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Title II — Maritime Security Trust Fund

H.R. 3151 · 119th Congress · May 1, 2025 · Lineage

II Maritime Security Trust Fund

Sec. 201 Maritime Security Trust Fund established

Section 50301 of title 46, United States Code, is amended—
(1)
by striking the section heading and inserting “Funds established”;
(2)
in subsection (e)—
(A)
in paragraph (2), by redesignating subparagraphs (A), (B), and (C), as clauses (i), (ii), and (iii), respectively, and adjusting the margins accordingly;
(B)
by redesignating paragraphs (1), (2), and (3), as subparagraphs (A), (B), and (C), respectively, and adjusting the margins accordingly;
(C)
in subparagraph (A), as redesignated by subparagraph (B), by striking “paragraph (2)” and inserting “subparagraph (B)”;
(D)
in subparagraph (B), as redesignated by subparagraph (B), in the matter preceding clause (i), by striking “Paragraph (1)” and inserting “Subparagraph (A)”; and
(E)
in subparagraph (C), as redesignated by subparagraph (B), by striking “Paragraph (1)” and inserting “Subparagraph (A)”;
(3)
in subsection (f), by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D), respectively, and adjusting the margins accordingly;
(4)
by redesignating subsections (b) through (g) as paragraphs (2) through (7), respectively, and adjusting the margins accordingly;
(5)
in subsection (a), by striking “In General” and all that follows through “There is a” and inserting the following:

“(a) Vessel Operations Revolving Fund

“(1) In General—There is a”

(6)
in paragraph (4), by striking “subsection (a)” and inserting “paragraph (1)”; and
(7)
by adding at the end the following:

“(b) Maritime Security Trust Fund

“(1) In general—There is a “Maritime Security Trust Fund” for use in carrying out programs or activities associated with supporting the merchant marine of the United States and the maritime industrial base, as authorized under the SHIPS for America Act of 2025.

“(2) Transfer of amounts—The Fund shall be credited with amounts equivalent to the receipts from each of the following:

“(A) The taxes received in the Treasury under—

“(i) section 60301 of this title (relating to regular tonnage taxes);

“(ii) section 60302 of this title (relating to special tonnage taxes); and

“(iii) section 60303 of this title (relating to light money).

“(B) The revenue collected from—

“(i) duties imposed under section 466 of the Tariff Act of 1930 (19 U.S.C. 1466) (relating to equipment and repair of vessels);

“(ii) duties, fees, or monetary penalties imposed by the United States Trade Representative under section 301 of the Trade Act of 1974 (19 U.S.C. 2411) pursuant to the determination of the Trade Representative that the targeting of the maritime, logistics, and shipbuilding sectors for dominance by the People’s Republic of China is unreasonable and burdens or restricts United States commerce, notice of which was published in the Federal Register on January 23, 2025 (90 Fed. Reg. 8089); and

“(iii) duties imposed under section 60502 of this title (relating to discriminating duty on goods imported in foreign vessels or from contiguous countries).

“(C) Any penalties paid with respect to a vessel pursuant to any of the following sections of this title:

“(i) Section 2017.

“(ii) Section 2302.

“(iii) Section 3318.

“(iv) Section 3718.

“(v) Section 4106.

“(vi) Section 5116.

“(vii) Section 11303.

“(viii) Section 11501.

“(ix) Section 12151.

“(x) Section 12507.

“(xi) Section 14701.

“(xii) Section 30707, with respect to the portion of the fine that goes to the United States Government under subsection (c) of such section.

“(xiii) Section 31309.

“(xiv) Section 31330.

“(xv) Section 41107.

“(xvi) Section 41108.

“(xvii) Section 42108.

“(xviii) Section 44104.

“(xix) Section 70052.

“(xx) Section 70119.

“(xxi) Section 70506.

“(xxii) Section 80509.

“(D) Any revenue generated in connection with the seizure and forfeiture of a maritime vessel under—

“(i) section 3 of the Act of August 5, 1935 (49 Stat. 518, chapter 438; 19 U.S.C. 1703);

“(ii) section 70052 of this title; and

“(iii) section 70507 of this title.

“(3) Total Balance—The total amount in the Maritime Security Trust Fund at any time shall not exceed $20,000,000,000.

“(4) Expenditures—Amounts in the Maritime Security Trust Fund shall be available for making expenditures before October 1, 2035, to meet those obligations of the United States heretofore and hereafter incurred which are authorized to be paid out of the Maritime Security Trust Fund under the SHIPS for America Act of 2025, including the amendments made in such Act.”

Sec. 202 Regular tonnage taxes

(a)
Rate updates— Section 60301 of title 46, United States Code, is amended—
(1)
in subsection (a), by striking “, for fiscal years 2006 through 2010, and 2 cents per ton not to exceed a total of 10 cents per ton per year, for each fiscal year thereafter”; and
(2)
in subsection (b), by striking “, for fiscal years 2006 through 2010, and 6 cents per ton, not to exceed a total of 30 cents per ton per year, for each fiscal year thereafter”.
(b)
Foreign shipyard of concern—
(1)
Definition— The term foreign shipyard of concern means—
(A)
a shipyard owned by a firm owned or controlled by the government of a foreign country of concern or a foreign entity of concern, that has the capacity to produce both military and commercial vessels; and
(B)
a foreign shipyard designated under paragraph (2).
(2)
Designation—
(A)
In General— Beginning after October 1, 2027, the Maritime Security Advisor, in consultation with the Maritime Security Board, shall designate certain foreign shipyards that pose a threat to the national security or economic security of the United States as foreign shipyards of concern, in accordance with this paragraph.
(B)
Notice and comment— A proposed designation under subparagraph (A) shall be subject to notice and comment in the Federal Register.
(C)
Annual revisions— The list of shipyards designated under this paragraph shall be revised, and new shipyards may be designated, not more frequently than once a year.
(c)
Penalty rates; inflation— Section 60301 of title 46, United States Code, is further amended—
(1)
by redesignating subsection (c) as subsection (e); and
(2)
by inserting after subsection (b) the following:

“(c) Penalty rate

“(1) In General—In accordance with paragraph (2), and in addition to the tax imposed on a vessel under subsection (b), a penalty tax with no annual limit is imposed on a vessel subject to the tax imposed under subsection (b), at a rate of—

“(A) $5 per ton for a vessel that—

“(i) is owned or operated by a foreign entity of concern;

“(ii) is a vessel registered under a registry of a foreign country of concern;

“(iii) was a vessel registered under a registry of a foreign country of concern at any time during the 3 years preceding the date of the determination of the application of subsection (a) or (b); or

“(iv) is owned or operated by an entity, with respect to which—

“(I) an amount equal to 50 percent or greater of the total number of vessels ordered at the time of the determination of the application of subsection (a) or (b) are vessels ordered from a shipyard of concern; or

“(II) an amount equal to 50 percent or greater of the total number of vessels that the entity expects to have delivered in the period of 24 months after the time of such determination are vessels expected to be delivered by a shipyard of concern;

“(B) $3.50 per ton for a vessel that is owned or operated by an entity, with respect to which—

“(i) an amount equal to 25 percent or more, but less than 50 percent, of the total number of vessels ordered at the time of the determination of the application of subsection (a) or (b) are vessels ordered from a shipyard of concern; or

“(ii) an amount equal to 25 percent or more, but less than 50 percent, of the total number of vessels that the entity expects to have delivered in the period of 24 months after the time of such determination are vessels expected to be delivered by a shipyard of concern;

“(C) $1.25 per ton for a vessel that is owned or operated by an entity with a fleet of vessels, of which an amount equal to 50 percent or more of the number of such vessels were constructed or underwent any repairs (excluding necessary repairs as described in paragraph (1) of section 466(d) of the Tariff Act of 1930 (19 U.S.C. 1466(d)(1))) in a shipyard of concern at any time during the 3 years preceding the date of the determination of the application of subsection (b).

“(2) Highest applicable rate—A vessel with respect to which the descriptions in 2 or more subparagraphs in paragraph (1) apply, shall be subject to the highest applicable rate described in that paragraph.

“(3) Definitions—In this subsection—

“(A) the terms foreign country of concern and foreign entity of concern have the meanings given those terms in section 4 of the SHIPS for America Act of 2025; and

“(B) the term foreign shipyard of concern has the meaning give that term in section 202 of that Act.

“(d) Index for inflation—The taxes imposed under this section shall be annually increased to account for inflation.”

Sec. 203 Presidential suspension of tonnage taxes and light money

Section 60304 of title 46, United States Code, is amended to read as follows:

“60304. Presidential suspension of tonnage taxes and light money

“(a) In general—Except as provided in subsection (b), if the President is satisfied that the government of a foreign country does not impose discriminating or countervailing duties to the disadvantage of the United States, the President may suspend the imposition of special tonnage taxes and light money under sections 60302 and 60303 of this title on vessels of that country.

“(b) Exception—Subsection (a) shall not apply to any vessel that—

“(1) is owned or operated by a foreign entity of concern (as that term is defined in section 4 of the SHIPS for America Act of 2025);

“(2) is a vessel registered under a registry of a foreign country of concern (as that term is defined in section 4 of the SHIPS for America Act of 2025); or

“(3) was a vessel registered under a registry of a foreign country of concern (as that term is defined in section 4 of the SHIPS for America Act of 2025) at any time during the 3 years preceding the date of the determination of the application of subsection (a).”