This Act may be cited as the Ensuring Coast Guard Readiness Act.

(a) In general Subsection (b) of section 1151 of title 14, United States Code, is amended to read as follows: (b) (1) The President may authorize exceptions to the prohibition in subsection (a) when the President determines that it is in the national security interest of the United States to do so, provided that— (A) the foreign shipyard concerned is located in a North Atlantic Treaty Organization member country or a country in the Indo-Pacific region that is party to a mutual defense treaty with the United States; and (B) the cost of the construction concerned is less than the cost would be if such construction occurred in a domestic shipyard. (2) The President shall transmit notice to Congress of any such determination, and no contract may be made pursuant to the exception authorized until the end of the 30-day period beginning on the date the notice of such determination is received by Congress. (3) Before the construction of a Coast Guard vessel, or a major component of the hull or superstructure of a Coast Guard vessel, may commence at a foreign shipyard pursuant to this subsection, the Commandant shall submit to Congress a certification that the foreign shipyard is not owned or operated by a Chinese company or a multinational company domiciled in the People’s Republic of China.. (b) Conforming amendment Section 8679(a) of title 10, United States Code, is amended by inserting and section 1151(b) of title 14 after in subsection (b).