---
kind: "section"
citation: "46 U.S.C. § 53206"
title: "46"
title_heading: "Shipping"
number: "53206"
heading: "Payments"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/46/53206"
units:
  - "Subtitle V — Merchant Marine"
  - "Part C — Financial Assistance Programs"
  - "Chapter 532 — Cable Security Fleet"
---

# §53206. Payments

- (a) **Annual Payment.—**
  - (1) **In general.—** The [Secretary](/usc/46/53101.md?p=8), subject to availability of appropriations and other provisions of this section, shall pay to the [Contractor](/usc/46/53101.md?p=2) for an [operating agreement](/usc/46/53201.md?p=8), for each [vessel](/usc/46/53501.md?p=9) that is covered by the [operating agreement](/usc/46/53201.md?p=8), an amount equal to $5,000,000 for each [fiscal year](/usc/46/53201.md?p=6) 2021 through 2035.
  - (2) **Timing.—** This amount shall be paid in equal monthly installments at the end of each month. The amount shall not be reduced except as provided by this section or [section 51307(b)](/usc/46/51307.md?p=b).
- (b) **Certification Required for Payment.—** As a condition of receiving payment under this section for a [fiscal year](/usc/46/53201.md?p=6) for a [vessel](/usc/46/53501.md?p=9), the [Contractor](/usc/46/53101.md?p=2) for the [vessel](/usc/46/53501.md?p=9) shall certify that the [vessel](/usc/46/53501.md?p=9) has been and will be operated in accordance with [section 53205(a)(1)](/usc/46/53205.md?p=a-1) for 365 days in each [fiscal year](/usc/46/53201.md?p=6). Up to thirty (30) days during which the [vessel](/usc/46/53501.md?p=9) is drydocked, surveyed, inspected, or repaired shall be considered days of operation for purposes of this subsection.
- (c) **General Limitations.—** The [Secretary](/usc/46/53101.md?p=8) shall not make any payment under this chapter for a [vessel](/usc/46/53501.md?p=9) with respect to any days for which the [vessel](/usc/46/53501.md?p=9) is—
  - (1) not operated or maintained in accordance with an [Operating Agreement](/usc/46/53201.md?p=8) under this chapter; or
  - (2) more than 40 years of age.
- (d) **Reductions in Payments.—** With respect to payments under this chapter for a [vessel](/usc/46/53501.md?p=9) covered by an [Operating Agreement](/usc/46/53201.md?p=8), the [Secretary](/usc/46/53101.md?p=8) shall make a pro rata reduction for each day less than 365 in a [fiscal year](/usc/46/53201.md?p=6) that the [vessel](/usc/46/53501.md?p=9) is not operated in accordance with [section 53205(a)(1)](/usc/46/53205.md?p=a-1), with days during which the [vessel](/usc/46/53501.md?p=9) is drydocked or undergoing survey, inspection or repair to be considered days on which the [vessel](/usc/46/53501.md?p=9) is operated as provided in [subsection (b)](#b).

## Source credit

(Added Pub. L. 116–92, div. C, title XXXV, § 3521(a), Dec. 20, 2019, 133 Stat. 1995; amended Pub. L. 117–263, div. C, title XXXV, § 3517(b)(2), Dec. 23, 2022, 136 Stat. 3074.)

## Notes

### Editorial Notes

### Amendments

2022—Subsec. (a)(2). Pub. L. 117–263 inserted “or section 51307(b)” after “this section”.