Title I — Maritime Administration
I Maritime Administration
Sec. 102 Maritime Security Program
“(D) $5,233,463 for each of fiscal years 2026 through 2035.”
“(4) $314,007,780 for each of fiscal years 2026 through 2035.”
Sec. 103 Department of Transportation Inspector General Report
Sec. 104 Authority for MARAD to retain foreign student tuition reimbursement
“(e) Credit of reimbursement—Reimbursements under this section shall be credited to the Maritime Administration’s Operations and Training appropriation, to remain available until expended, for use only for those expenses related to the operations of the United States Merchant Marine Academy.”
Sec. 105 Appointment of candidates attending sponsored preparatory school
“(a) In General—The Secretary”
“(b) Appointment of candidates selected for preparatory school sponsorship—The Secretary of Transportation may appoint each year as cadets at the United States Merchant Marine Academy not more than 40 qualified individuals sponsored by the Academy to attend preparatory school during the academic year prior to entrance in the Academy, and who have successfully met the terms and conditions of sponsorship set by the Academy.”
Sec. 106 Independent study on the United States Merchant Marine Academy
Sec. 107 Centers of excellence for domestic maritime workforce training and education
“(d) State Maritime Academy—The Secretary of Transportation shall designate each State maritime academy, as defined in section 51102(4) of this title, as a center of excellence under this section.”
Sec. 108 Military to mariner
Sec. 109 Salvage recoveries of federally owned cargoes
“(h) Funds transfer authority related to the use of National Defense Reserve Fleet vessels and the provision of maritime-Related services
“(1) In General—When the Secretary of Transportation provides for the use of its vessels or maritime-related services and goods under a reimbursable agreement with a Federal entity, or State or local entity, authorized to receive goods and services from the Maritime Administration for programs, projects, activities, and expenses related to the National Defense Reserve Fleet or maritime-related services:
“(A) Federal entities are authorized to transfer funds to the Secretary in advance of expenditure or upon providing the goods or services ordered, as determined by the Secretary.
“(B) The Secretary shall determine all other terms and conditions under which such payments should be made and provide such goods and services using its existing or new contracts, including general agency agreements, memoranda of understanding, or similar agreements.
“(2) Reimbursable agreement with a Federal entity
“(A) In General—The Maritime Administration is authorized to provide maritime-related services and goods under a reimbursable agreement with a Federal entity.
“(B) Maritime-related services defined—For the purposes of this subsection, maritime-related services includes the acquisition, procurement, operation, maintenance, preservation, sale, lease, charter, construction, reconstruction, or reconditioning (including outfitting and equipping incidental to construction, reconstruction, or reconditioning) of a merchant vessel or shipyard, ship site, terminal, pier, dock, warehouse, or other installation related to the maritime operations of a Federal entity.
“(3) Salvaging cargoes
“(A) In General—The Maritime Administration may provide services and purchase goods relating to the salvaging of cargoes aboard vessels in the custody or control of the Maritime Administration or its predecessor agencies and receive and retain reimbursement from Federal entities for all such costs as it may incur.
“(B) Reimbursement—Reimbursement as provided for in subparagraph (A) may come from—
“(i) the proceeds recovered from such salvage; or
“(ii) the Federal entity for which the Maritime Administration has or will provide such goods and services, depending on the agreement of the parties involved.
“(4) Amounts received—Amounts received as reimbursements under this subsection shall be credited to the fund or account that was used to cover the costs incurred by the Secretary or, if the period of availability of obligations for that appropriation has expired, to the appropriation of funds that is currently available to the Secretary for substantially the same purpose. Amounts so credited shall be merged with amounts in such fund or account and shall be available for the same purposes, and subject to the same conditions and limitations, as amounts in such fund or account.
“(5) Advance Payments—Payments made in advance shall be for any part of the estimated cost as determined by the Secretary of Transportation. Adjustments to the amounts paid in advance shall be made as agreed to by the Secretary of Transportation and the head of the ordering agency or unit based on the actual cost of goods or services provided.
“(6) Bill or request for payment—A bill submitted or a request for payment is not subject to audit or certification in advance of payment.”
Sec. 110 Salvage recoveries for subrogated ownership of vessels and cargoes
“(e) Salvage agreements—Notwithstanding title XIV of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (10 U.S.C. 113 note), the Secretary of Transportation is authorized to enter into marine salvage agreements for the recoveries, sale, and disposal of sunken or damaged vessels, cargoes, or properties owned or insured by or on behalf of the Maritime Administration, the United States Shipping Board, the U.S. Shipping Board Bureau, the United States Maritime Commission, or the War Shipping Administration.
“(f) Recoveries—Notwithstanding other provisions of law, the net proceeds from salvage agreements entered into as authorized in subsection (e) shall remain available until expended and be distributed as follows for marine insurance-related salvages:
“(1) Fifty percent of the net funds recovered shall be deposited in the war risk revolving fund and shall be available for the purposes of the war risk revolving fund.
“(2) Fifty percent of the net funds recovered shall be deposited in the Vessel Operations Revolving Fund as established by section 50301(a) of this title and shall be available until expended as follows:
“(A) Fifty percent shall be available to the Administrator of the Maritime Administration for such acquisition, maintenance, repair, reconditioning, or improvement of vessels in the National Defense Reserve Fleet as is authorized under other Federal law.
“(B) Twenty-five percent shall be available to the Administrator of the Maritime Administration for the payment or reimbursement of expenses incurred by or on behalf of State maritime academies or the United States Merchant Marine Academy for facility and training ship maintenance, repair, and modernization, and for the purchase of simulators and fuel.
“(C) The remainder shall be distributed for maritime heritage preservation to the Department of the Interior for grants as authorized by section 308703 of title 54.”
Sec. 111 Port operations, research, and technology
“(c) Port and intermodal improvement program
“(1) General authority—Subject to the availability of appropriations, the Secretary of Transportation shall make grants, on a competitive basis, to eligible applicants to assist in funding eligible projects for the purpose of improving the safety, efficiency, or reliability of the movement of goods through ports and intermodal connections to ports.
“(2) Eligible applicant—The Secretary may make a grant under this subsection to the following:
“(A) A State.
“(B) A political subdivision of a State or local government.
“(C) A public agency or publicly chartered authority established by 1 or more States.
“(D) A special purpose district with a transportation function.
“(E) An Indian Tribe (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304), without regard to capitalization), or a consortium of Indian Tribes.
“(F) A multistate or multijurisdictional group of entities described in this subsection.
“(G) A lead entity described in subparagraph (A), (B), (C), (D), (E), or (F) jointly with a private entity or group of private entities.
“(3) Eligible projects—The Secretary may make a grant under this subsection—
“(A) for a project that—
“(i) is either—
“(I) within the boundary of a port; or
“(II) outside the boundary of a port, but is directly related to port operations or to an intermodal connection to a port; and
“(ii) will be used to improve the safety, efficiency, or reliability of—
“(I) the loading and unloading of goods at the port, such as for marine terminal equipment;
“(II) the movement of goods into, out of, around, or within a port, such as for highway or rail infrastructure, intermodal facilities, freight intelligent transportation systems, and digital infrastructure systems;
“(III) environmental mitigation measures and operational improvements directly related to enhancing the efficiency of ports and intermodal connections to ports; or
“(IV) the movement of vessels in and out of the port facility by dredging a vessel berthing area or performing construction or maintenance dredging that is not part of a Federal channel or an access channel associated with a Federal channel; or
“(B) notwithstanding paragraph (6)(A)(v), to provide financial assistance to 1 or more projects under subparagraph (A) for development phase activities, including planning, feasibility analysis, revenue forecasting, environmental review, permitting, and preliminary engineering and design work.
“(4) Prohibited uses—A grant award under this subsection may not be used—
“(A) to finance or refinance the construction, reconstruction, reconditioning, or purchase of a vessel that is eligible for such assistance under chapter 537, unless the Secretary determines such vessel—
“(i) is necessary for a project described in paragraph (3)(A)(ii)(III) of this subsection; and
“(ii) is not receiving assistance under chapter 537; or
“(B) for any project within a small shipyard (as defined in section 54101).
“(5) Applications and process
“(A) Applications—To be eligible for a grant under this subsection, an eligible applicant shall submit to the Secretary an application in such form, at such time, and containing such information as the Secretary considers appropriate.
“(B) Solicitation process—Not later than 60 days after the date that amounts are made available for grants under this subsection for a fiscal year, the Secretary shall solicit grant applications for eligible projects in accordance with this subsection.
“(6) Project selection criteria
“(A) In general—The Secretary may select a project described in paragraph (3) for funding under this subsection if the Secretary determines that—
“(i) the project improves the safety, efficiency, or reliability of the movement of goods through a port or intermodal connection to a port;
“(ii) the project is cost effective;
“(iii) the eligible applicant has authority to carry out the project;
“(iv) the eligible applicant has sufficient funding available to meet the matching requirements under paragraph (8);
“(v) the project will be completed without unreasonable delay; and
“(vi) the project cannot be easily and efficiently completed without Federal funding or financial assistance available to the project sponsor.
“(B) Additional considerations—In selecting projects described in paragraph (3) for funding under this subsection, the Secretary shall give substantial weight to—
“(i) the utilization of non-Federal contributions; and
“(ii) the net benefits of the funds awarded under this subsection, considering the cost-benefit analysis of the project, as applicable.
“(C) Small projects—The Secretary may waive the cost-benefit analysis under subparagraph (A)(ii), and establish a simplified, alternative basis for determining whether a project is cost effective, for a small project described in paragraph (7)(B).
“(7) Allocation of funds
“(A) Geographic distribution—Not more than 25 percent of the amounts made available for grants under this subsection for a fiscal year may be used to make grants for projects in any 1 State.
“(B) Small projects—The Secretary shall reserve 25 percent of the amounts made available for grants under this subsection each fiscal year to make grants for eligible projects described in paragraph (3)(A) that request the lesser of—
“(i) 10 percent of the amounts made available for grants under this subsection for a fiscal year; or
“(ii) $11,000,000.
“(C) Dredging projects—Not more than 25 percent of the amounts made available for grants under this subsection for a fiscal year may be used to make grants for projects described in paragraph (3)(A)(ii)(III).
“(D) Development phase activities—Not more than 10 percent of the amounts made available for grants under this subsection for a fiscal year may be used to make grants for development phase activities under paragraph (3)(B).
“(E) Research harbors
“(i) In General—Of the funds that may be used under subparagraph (C), the Secretary shall consider reserving an amount equal to not more than 5 percent of the amounts made available for grants under this subsection to make grants for projects described in paragraph (3)(A)(ii)(III) for research harbors.
“(ii) Applicants—Notwithstanding paragraph (2), the Secretary may allow entities not described in that paragraph to be eligible applicants for grants under this subparagraph.
“(8) Federal share of total project costs
“(A) Total project costs—To be eligible for a grant under this subsection, an eligible applicant shall submit to the Secretary an estimate of the total costs of a project under this subsection based on the best available information, including any available engineering studies, studies of economic feasibility, environmental analyses, and information on the expected use of equipment or facilities.
“(B) Federal share
“(i) In general—Except as provided in clauses (ii) and (iii), the Federal share of the total costs of a project under this subsection shall not exceed 80 percent.
“(ii) Dredging projects—The Federal share of the total costs of a project described in paragraph (3)(A)(ii)(III) shall not exceed 50 percent.
“(iii) Rural areas—The Secretary may increase the Federal share of costs above 80 percent for a project located in a rural area.
“(9) Procedural safeguards—The Secretary shall issue guidelines to establish appropriate accounting, reporting, and review procedures to ensure that—
“(A) grant funds are used for the purposes for which those funds were made available;
“(B) each grantee properly accounts for all expenditures of grant funds; and
“(C) grant funds not used for such purposes and amounts not obligated or expended are returned.
“(10) Conditions
“(A) In general—The Secretary shall require as a condition of making a grant under this subsection that a grantee—
“(i) maintain such records as the Secretary considers necessary;
“(ii) make the records described in clause (i) available for review and audit by the Secretary; and
“(iii) periodically report to the Secretary such information as the Secretary considers necessary to assess progress.
“(B) Labor—The Federal wage rate requirements of subchapter IV of chapter 31 of title 40 shall apply, in the same manner as such requirements apply to contracts subject to such subchapter, to—
“(i) each project for which a grant is provided under this subsection; and
“(ii) all portions of a project described in clause (i), regardless of whether such a portion is funded using—
“(I) other Federal funds; or
“(II) non-Federal funds.
“(11) Congressional notification
“(A) Notification—Not less than 60 days before making a grant for a project under this subsection, the Secretary shall notify, in writing, the appropriate committees of Congress of the proposed grant.
“(B) Contents—Each notification under subparagraph (A) shall include—
“(i) an evaluation of and justification for the project; and
“(ii) the amount of the proposed grant award.
“(C) Congressional disapproval—The Secretary shall not make a grant or any other obligation or commitment to fund a project under this subsection if a joint resolution is enacted disapproving funding for the project before the last day of the 60-day period described in subparagraph (A).
“(12) Limitation on statutory construction—Nothing in this subsection shall be construed to affect existing authorities to conduct port infrastructure programs in—
“(A) Hawaii, as authorized by section 9008 of the SAFETEA–LU Act (Public Law 109–59; 119 Stat. 1926);
“(B) Alaska, as authorized by section 10205 of the SAFETEA–LU Act (Public Law 109–59; 119 Stat. 1934); or
“(C) Guam, as authorized by section 3512 of the Duncan Hunter National Defense Authorization Act for Fiscal Year 2009 (48 U.S.C. 1421r).
“(13) Reports—The Secretary shall make available on the website of the Department of Transportation at the end of each fiscal year an annual report that lists each project for which a grant has been provided under this subsection during that fiscal year.
“(14) Administration
“(A) Administrative and oversight costs—The Secretary may retain not more than 2 percent of the amounts appropriated for each fiscal year under this subsection for the administrative and oversight costs incurred by the Secretary to carry out this subsection.
“(B) Availability
“(i) In general—Amounts appropriated for carrying out this subsection shall remain available until expended.
“(ii) Unexpended funds—Amounts awarded as a grant under this subsection that are not expended by the grantee during the 5-year period following the date of the award shall remain available to the Secretary for use for grants under this subsection in a subsequent fiscal year.
“(15) Definitions—In this subsection:
“(A) Appropriate committees of Congress—The term appropriate committees of Congress means—
“(i) the Committee on Commerce, Science, and Transportation of the Senate; and
“(ii) the Committee on Transportation and Infrastructure of the House of Representatives.
“(B) Port—The term port includes—
“(i) a seaport; and
“(ii) an inland waterways port.
“(C) Project—The term project includes construction, reconstruction, environmental rehabilitation, acquisition of property, including land related to the project and improvements to the land, equipment acquisition, and operational improvements.
“(D) Research harbor—The term research harbor includes a harbor that supports or will support a federally owned vessel operated by a State maritime academy (as defined in section 51102 of this title) or a non-Federal oceanographic research facility.
“(E) Rural area—The term rural area means an area that is outside an urbanized area.
“(d) Additional authority of the Secretary—In carrying out this section, the Secretary may—
“(1) receive funds from a Federal or non-Federal entity that has a specific agreement with the Secretary to further the purposes of this section;
“(2) coordinate with other Federal agencies to expedite the process established under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) for the improvement of port facilities to improve the efficiency of the transportation system, to increase port security, or to provide greater access to port facilities;
“(3) seek to coordinate all reviews or requirements with appropriate local, State, and Federal agencies; and
“(4) in addition to any financial assistance provided under subsection (c), provide such technical assistance to port authorities or commissions or their subdivisions and agents as needed for project planning, design, and construction.”
Sec. 112 Strategic seaports
Sec. 113 Maritime technical assistance program
“(A) performance to meet United States Federal and international standards and guidelines, including—”
“(B) the efficiency and competitiveness of domestic maritime industries; and
“(2) coordinate with the Environmental Protection Agency, the Coast Guard, and other Federal, State, local, or tribal agencies, as appropriate.”
“(e) Limitations on the use of funds—For the purposes of this program, no more than 3 percent of funds may be used for administrative purposes.”
Sec. 114 Requirement for small shipyard grantees
“(1) In general—Grants awarded”
“(2) Buy america
“(A) In general—Subject to subparagraph (B), no funds may be obligated by the Administrator of the Maritime Administration under this section, unless each product and material purchased with those funds (including products and materials purchased by a grantee), and including any commercially available off-the-shelf item, is—
“(i) an unmanufactured article, material, or supply that has been mined or produced in the United States; or
“(ii) a manufactured article, material, or supply that has been manufactured in the United States substantially all from articles, materials, or supplies mined, produced, or manufactured in the United States.
“(B) Exceptions
“(i) In general—Notwithstanding subparagraph (A), the requirements of that subparagraph shall not apply with respect to a particular product or material if the Administrator determines—
“(I) that the application of those requirements would be inconsistent with the public interest;
“(II) that such product or material is not available in the United States in sufficient and reasonably available quantities, of a satisfactory quality, or on a timely basis; or
“(III) that inclusion of a domestic product or material will increase the cost of that product or material by more than 25 percent, with respect to a certain contract between a grantee and that grantee's supplier.
“(ii) Federal register—A determination made by the Administrator under this subparagraph shall be published in the Federal Register.
“(C) Definitions—ln this paragraph:
“(i) The term commercially available off-the-shelf item means—
“(I) any item of supply (including construction material) that is—
“(aa) a commercial item, as defined by section 2.101 of title 48, Code of Federal Regulations; and
“(bb) sold in substantial quantities in the commercial marketplace; and
“(II) does not include bulk cargo, as defined in section 40102(4) of this title, such as agricultural products and petroleum products.
“(ii) The term product or material means an article, material, or supply brought to the site by the recipient for incorporation into the building, work, or project. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site.
“(iii) The term United States includes the District of Columbia, the Commonwealth of Puerto Rico, the Northern Mariana Islands, Guam, American Samoa, and the Virgin Islands.”
Sec. 115 Improvement of National Oceanographic Partnership Program
“(B) soliciting, accepting, and executing oceanographic research and observational projects funded by private grants, contracts, or cooperative agreements that contribute to such goals.”
“(10) The Bureau of Ocean Energy Management of the Department of the Interior.
“(11) The Bureau of Safety and Environmental Enforcement of the Department of the Interior.”
“(F) Preexisting facilities, such as regional data centers operated by the Integrated Ocean Observing system, and expertise.”
“(4) A description of the involvement of Federal agencies and non-Federal contributors participating in the program.”
“(1) The Secretary of the Navy shall establish an office to support the National Oceanographic Partnership Program. The Council shall use competitive procedures in selecting an operator for the partnership program office. If practicable, an organization or entity may be selected as operator only if the organization or entity has experience managing interagency programs and programs with participation from other public and private entities.”
“(g) Contract and grant authority
“(1) In General—To carry out the purposes of the National Oceanographic Partnership Program, the Council shall have, in addition to other powers otherwise given it under this chapter, the following authorities:
“(A) To authorize one or more of the departments or agencies represented on the Council to enter into contracts and make grants or cooperative agreements, and establish and manage new collaborative programs as considered appropriate, to address emerging science priorities using both donated and appropriated funds.
“(B) To authorize the program office under subsection (f), on behalf of the Council, to accept funds, including fines and penalties, from other Federal and State departments and agencies.
“(C) To authorize the program office, on behalf of the Council, to award grants and enter into contracts for purposes of the National Oceanographic Partnership Program.
“(D) To authorize the program office, on behalf of the Council, to solicit, accept and execute oceanographic research projects for purposes of the National Oceanographic Partnership Program that are funded by private grants, contracts, and donations.
“(E) To transfer funds to other Federal and State departments and agencies in furtherance of the purposes of the National Oceanographic Partnership Program.
“(F) To authorize one or more of the departments or agencies represented on the Council to enter into contracts and make grants, for the purpose of implementing the National Oceanographic Partnership Program and carrying out the responsibilities of the Council.
“(G) To use, with the consent of the head of the agency or entity concerned, on a non-reimbursable basis, the land, services, equipment, personnel, facilities, advice, and information provided by a Federal agency or entity, State, local government, Tribal government, territory, or possession, or any subdivisions thereof, or the District of Columbia as may be helpful in the performance of the duties of the Council.
“(2) Funds transferred—Funds identified for direct support of National Oceanographic Partnership Program grants are authorized for transfer between agencies and are exempt from section 1535 of title 31, United States Code (commonly known as the “Economy Act of 1932”).”
Sec. 116 Improvements to the maritime guaranteed loan program
“(15) Vessel of National Interest—The term Vessel of National Interest means a vessel deemed to be of national interest that meets characteristics determined by the Administrator, in consultation with the Secretary of Defense, the Secretary of Homeland Security, or the heads of other Federal agencies, as described in section 53703(e).”
“(1) Guarantee—The Secretary, acting through the Administrator, on terms the Secretary or Administrator may prescribe,”
“(2) Preferred eligible lender—The Federal Financing Bank shall be the preferred eligible lender of the principal and interest of the guaranteed obligations issued under this chapter.”
“(c) Independent analysis
“(1) In General—To assess and mitigate the risks due to factors associated with markets, technology, financial, or legal structures related to an application or guarantee under this chapter, the Secretary or Administrator may utilize third-party experts, including legal counsel, to—
“(A) process and review applications under this chapter, including conducting independent analysis and review of aspects of an application;
“(B) represent the Secretary or Administrator in structuring and documenting the obligation guarantee;
“(C) analyze and review aspects of, structure, and document the obligation guarantee during the term of the guarantee;
“(D) recommend financial covenants or financial ratios to be met by the applicant during the time a guarantee under this chapter is outstanding that are—
“(i) based on the financial covenants or financial ratios, if any, that are then applicable to the obligor under private sector credit agreements; and
“(ii) in lieu of other financial covenants applicable to the obligor under this chapter with respect to requirements regarding long-term debt-to-equity, minimum working capital, or minimum amount of equity; and
“(E) represent the Secretary or Administrator to protect the security interests of the Government relating to an obligation guarantee.
“(2) Private sector expert—Independent analysis, review, and representation conducted under this subsection shall be performed by a private sector expert in the applicable field who is selected by the Secretary or Administrator.
“(d) Vessels of National Interest
“(1) Notice of funding—The Secretary or Administrator may post a notice in the Federal Register regarding the availability of funding for obligation guarantees under this chapter for the construction, reconstruction, or reconditioning of a Vessel of National Interest and include a timeline for the submission of applications for such vessels.
“(2) Vessel characteristics
“(A) In General—The Secretary or Administrator, in consultation with the Secretary of Defense, the Secretary of Homeland Security, or the heads of other Federal agencies, shall develop and publish a list of vessel types that would be considered Vessels of National Interest.
“(B) Review—Such list shall be reviewed and revised every 4 years or as necessary, as determined by the Administrator.”
“(C) after applying subparagraphs (A) and (B), Vessels of National Interest.”
“(C) documented under the laws of the United States for the term of the guarantee of the obligation or until the obligation is paid in full, whichever is sooner.”
“(1) provisions for the protection of”
“(2) any other provisions that the Secretary or Administrator may prescribe.”
“(6) monitoring and providing services related to the obligor’s compliance with any terms related to the obligations, the guarantee, or maintenance of the Secretary or Administrator’s security interests under this chapter.”
“(1) In General—The Secretary”
“(2) Fee limitation inapplicable—Fees collected under this subsection are not subject to the limitation of subsection (b).”
“53719. Best practices
“The Secretary or Administrator shall ensure that all standard documents and agreements that relate to loan guarantees made pursuant to this chapter are reviewed and updated every four years to ensure that such documents and agreements meet the current commercial best practices to the extent permitted by law.”
Sec. 117 Technical corrections
“(3) Any design so selected shall include a representation of all the uniformed services (as that term is defined in section 101(a) of title 10, United States Code).”