Federal ship financing program improvements

(a) Definitions Section 53701 of title 46, United States Code, is amended— (1) by redesignating paragraphs (5) through (15) as paragraphs (6) through (16), respectively; (2) by inserting after paragraph (4) the following: (5) Fishing The term fishing has the meaning given such term in section 3 of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1802).; and (3) in paragraph (14), as so redesignated, by inserting used before fishing vessels. (b) Direct loans Section 53702(b) of title 46, United States Code, is amended— (1) in the subsection heading by striking DIRECT LOANS FOR FISHERIES and inserting DIRECT LOANS; (2) in paragraph (1) by inserting used before fishing vessel; and (3) in paragraph (4) by striking the purpose of and all that follows through financing the purchase and inserting the purpose of financing the purchase. (c) Funding limits Section 53704(a) of title 46, United States Code, is amended by striking obligations related to fishing vessels and fishery facilities and inserting obligations by the Secretary related to fishing facilities, and used fishing vessels. (d) Eligible purposes of obligations Section 53706(a)(1)(A) of title 46, United States Code, is amended— (1) in clause (iv) by striking the second or; (2) in clause (v) by striking the period and inserting; or; and (3) by adding at the end the following: (vi) in the fishing industry or seafood related trade.. (e) Findings related to obligors and operators Section 53707(c) of title 46, United States Code, is amended by inserting or Administrator after Secretary. (f) Findings related to economic soundness Section 53708 of title 46, United States Code, is amended by adding at the end the following: (f) Limitation The Administrator may not guarantee or make a commitment to guarantee an obligation under this chapter if the Secretary determines such guarantee or commitment is inconsistent with the wise use of the fisheries resources and the development, advancement, management, conservation, and protection of the fisheries resources consistent with the Magnuson Stevens Fishery Conservation and Management Act (16 U.S.C. 1801 et seq.).. (g) Amount of obligations Section 53709 of title 46, United States Code, is amended— (1) in subsection (b)(3)— (A) by striking For a fishing vessel or fishery facility and inserting the following: (A) In general For a used fishing vessel or fishery facility; and (B) by adding at the end the following: (B) Increased limitation For a fishing vessel for which the Administrator guarantees an obligation, the principal amount may not exceed 87.5 percent of the actual cost or depreciated cost.; and (2) in subsection (e) by inserting or Administrator after Secretary. (h) Replacement of vessels because of changes in operating standards Section 53734 of title 46, United States Code, is amended— (1) in subsection (a)(1) by inserting fishing, or other seafood related, before coastwise, intercoastal, or foreign trade; (2) in subsection (b)(2) by striking construction or reconstruction of the vessel and inserting construction or refinancing and reconstruction of the vessel; and (3) by adding at the end the following: (f) Applicability Guarantees made under subsection (a) for the construction or refinancing and reconstruction of a vessel designed and to be used in fishing or seafood related trade shall be made only with funds, including funds for the cost of guaranteed loans, appropriated on or after the date of enactment of the National Defense Authorization Act for Fiscal Year 2026.. (i) Eligibility Notwithstanding any requirements that such vessel be reconstructed, reconditioned, or repaired to qualify for a guarantee of an obligation, for a period of 2 years after the date of enactment of this Act, a fishing vessel greater than 79 feet overall in length built and documented after January 1, 2021, shall be eligible for a guarantee of an obligation from the Administrator under chapter 537 of title 46, United States Code. (j) Savings clause Nothing in this section, or the amendments made by this section, shall limit the authority of the Secretary of Commerce to provide direct loan obligations authorized by section 211(e) of the American Fisheries Act (Public Law 105–277).

(a) Section 53701 of title 46, United States Code, is amended— (1) in paragraph (3), by inserting retrofitting, reconfiguration, or similar work, as well as after include; (2) by redesignating paragraphs (5), (6), and (7) as paragraphs (7), (8), and (10) respectively and redesignating paragraphs (8) through (15) as paragraphs (12) through (19) respectively; (3) by inserting after paragraph (4) the following: (5) Eligible export vessel The term eligible export vessel means a vessel that— (A) is constructed, reconstructed, or reconditioned in the United States for use in world-wide trade; and (B) will, on delivery or redelivery, become or remain documented under the laws of a country other than the United States. (6) Fishing The term fishing has the meaning given such term in section 3 of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1802).; (4) by inserting after paragraph (8), as redesignated by paragraph (2), the following new paragraph: (9) General shipyard facility The term general shipyard facility means— (A) for operations on land— (i) a structure or appurtenance thereto designed for the construction, reconstruction, repair, rehabilitation, or refurbishment of a vessel, including a graving dock, building way, ship lift, wharf, or pier crane; (ii) the land necessary for the structure or appurtenance; and (iii) equipment that is for use with the structure or appurtenance and that is necessary for performing a function referred to in clause (i); and (B) for operations not on land, a vessel, floating drydock, or barge built in the United States and used for, equipped to be used for, or of a type normally used for, performing a function referred to in subparagraph (A)(i).; and (5) by inserting after paragraph (10), as redesignated by paragraph (2), the following new paragraph: (11) Modern shipbuilding technology The term modern shipbuilding technology means the best available proven technology, techniques, and processes appropriate to enhancing the productivity of shipyards, including engineering design, quality assurance, concurrent engineering, continuous process production technology, energy efficiency, waste minimization, design for recyclability or parts reuse, inventory management, upgraded worker skills, and communications with customers and suppliers.; and (6) in paragraph (15), as so redesignated, by inserting used " before fishing vessels. (b) Section 53702(b) of title 46, United States Code, is amended— (1) in the subsection heading by striking Direct loans for fisheries and inserting Direct loans; (2) in paragraph (1) by inserting used before fishing vessel; and (3) in paragraph (4) by striking the purpose of and all that follows through financing the purchase and inserting the purpose of financing the purchase. (c) Section 53703 of title 46, United States Code, is amended— (1) in subsection (a)— (A) in paragraph (1), by striking signed application and inserting completed application; (B) by striking paragraph (2) and inserting the following: (2) Additional information (A) The Secretary or the Administrator may— (i) request from an applicant additional information required to complete the review of an application; and (ii) establish a deadline for the applicant to provide such information. (B) If the applicant does not respond to the request for additional information, the Secretary or Administrator may— (i) notify the applicant that processing of the application will be suspended until the additional information is received; and (ii) toll the time for the decision.; and (2) in subsection (c), by amending paragraph (1)(D) to read as follows: (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 that are then applicable to the obligor under private sector credit agreements, if any; or (ii) in lieu of other financial covenants appropriate to the obligor under this chapter when evaluating the risks of the project for compliance with the requirements of section 53708 of this title; and. (d) Section 53704 of title 46, United States Code, is amended— (1) in subsection (a), by striking the second sentence and inserting the following: Of that amount (1) $850,000,000 shall be limited to obligations by the Secretary related to fishing facilities and used vessels; and (2) $3,000,000,000 shall be limited to obligations related to eligible export vessels.; and (2) in subsection (c)(4)— (A) in subparagraph (I) by striking; and and inserting a semicolon; (B) in subparagraph (J) by striking the period at the end and inserting; and; and (C) by adding at the end the following: (K) if applicable, the country risk for each eligible export vessel financed or to be financed by an obligation.. (e) Section 53706(a) of title 46, United States Code, is amended— (1) in paragraph (1)(A)— (A) by striking Financing (including reimbursement of an obligor for expenditures previously made for) the construction, reconstruction, or reconditioning, of a vessel and inserting Financing, including reimbursement of an obligor for expenditures previously made for, the construction, reconstruction, reconditioning, or purchase of a vessel (including an eligible export vessel); (B) in clause (iv) by striking the last or; (C) in clause (v) by striking the period; and (D) by adding at the end the following: (vi) as an eligible export vessel in worldwide trade; or (vii) in the fishing industry or seafood related trade.; and (2) by striking paragraph (8). (f) Section 53707 of title 46, United States Code, is amended— (1) in subsection (b) by striking construction, reconstruction, or reconditioning and inserting construction, reconstruction, reconditioning, or purchase; and (2) in subsection (c) by inserting or Administrator after Secretary. (g) Section 53708 of title 46, United States Code, is amended— (1) in subsection (c)— (A) in the subsection heading— (i) by striking Fishing; and (ii) by inserting Fishing before Facilities; and (B) by amending paragraph (1) to read as follows: (1) in the case of a used vessel, reconstructed or reconditioned in the United States and will contribute to the development of the United States commercial shipbuilding or fishing industries; or; and (2) by adding at the end the following: (f) Limitation The Administrator may not guarantee or make a commitment to guarantee an obligation under this chapter if the Secretary determines such guarantee or commitment is inconsistent with the wise use of the fisheries resources and the development, advancement, management, conservation, and protection of the fisheries resources consistent with the Magnuson Stevens Fishery Conservation and Management Act (16 U.S.C. 1801 et seq.).. (h) Section 53709 of title 46, United States Code, is amended— (1) by amending subsection (b) to read as follows: (b) Limitation on amount borrowed Except as otherwise provided, the principal amount of an obligation guaranteed under this chapter may not exceed 87.5 percent of the actual cost or depreciated actual cost, as determined by the Secretary or Administrator, of the vessel used as security for the guarantee.; and (2) in subsection (e) by inserting or Administrator after Secretary. (i) Section 53107(a)(4)(A) of title 46, United States Code, is amended by inserting or, in the case of an eligible export vessel, of the appropriate foreign authorities under a treaty, convention, or other international agreement to which the United States is a party after Coast Guard. (j) Section 53714(b) of title 46, United States Code, is amended by adding at the end the following: (6) Fees in excess of the cost of a project For projects where the minimum percentage rate calculated under paragraph (5) exceeds the cost of a project required by section 53704(c) of this title and section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a) such minimum percentage rate may be reduced to not exceed the cost of the project.. (k) Section 53715 of title 46, United States Code, is amended— (1) in subsection (a)(1)(B), by deleting 75 percent or 87.5 percent, whichever is applicable under section 53709(b) of this title, and inserting the percent applicable under section 53709(b); and (2) in subsection (e)(1)(A)(ii), by deleting 75 percent or 87.5 percent, whichever is applicable under section 53709(b) of this title, and inserting the percent applicable under section 53709(b). (l) Section 53723 of title 46, United States Code, is amended— (1) in subsection (a) by striking shall be paid in cash. and inserting the following: shall be— (1) paid in cash; and (2) include any applicable principal, interest, capitalized interest, premium, and late charges, if the obligation is held by the Federal Financing Bank.; (2) by redesignating subsections (b) through (d) as subsections (c) through (e), respectively; and (3) by inserting after subsection (a) the following: (b) Subrogation If the Secretary or the Administrator makes a payment under this section, the Secretary or the Administrator shall be subrogated to the rights of the recipient of the payment as specified in the guarantee or related agreements.. (m) Section 53733 of title 46, United States Code, is amended— (1) by striking subsection (a) and redesignating subsections (b) through (e) as subsections (a) through (d), respectively; (2) in subsection (a), as so redesignated,— (A) by striking advanced shipbuilding technology and modern shipbuilding technology and inserting shipyard capital improvements, including infrastructure and modern shipbuilding technology,; and (B) by striking Only a private shipyard is eligible to receive a guarantee and inserting To be eligible to receive a guarantee the obligor must have the authority to modify the general shipyard facility; (3) in subsection (c), as so redesignated, by striking advanced shipbuilding technology and inserting shipyard capital improvements, infrastructure,; and (4) by inserting the following new subsection (e): (e) Made in America The Administrator must exclude foreign components from a project eligible for a guarantee under this section, unless the Administrator grants a waiver based on non-availability of such foreign components due to timely availability, sufficient quality, or price competitive basis.; and (5) by striking subsection (f). (n) Section 53734 of title 46, United States Code, is amended— (1) in subsection (a)(1) by inserting fishing, or other seafood related, before coastwise, intercoastal, or foreign trade; (2) in subsection (b)(2) by striking construction or reconstruction of the vessel and inserting construction or refinancing and reconstruction of the vessel; and (3) by adding at the end the following: (f) Applicability Guarantees made under subsection (a) for the construction or refinancing and reconstruction of a vessel designed and to be used in fishing or seafood related trade or an eligible export vessel shall be made only with funds, including funds for the cost of guaranteed loans, appropriated on or after the date of enactment of the National Defense Authorization Act for Fiscal Year 2027.. (o) Eligibility Notwithstanding any requirements that such vessel be reconstructed, reconditioned, or repaired to qualify for a guarantee of an obligation, for a period of 2 years after the date of enactment of this Act, a fishing vessel greater than 79 feet overall in length built and documented after January 1, 2021, shall be eligible for a guarantee of an obligation from the Administrator under chapter 537 of title 46, United States Code. (p) Savings clause Nothing in this section, or the amendments made by this section, shall limit the authority of the Secretary of Commerce to provide direct loan obligations authorized by section 211(e) of the American Fisheries Act (Public Law 105–277). (q) Repeal in National Defense Authorization Act Sections 3506(i)(2) and 3506(1)(2) of the National Defense Authorization Act of Fiscal Year 2020 (Public Law 116–92) are repealed, and the provisions of law that were repealed or amended by these sections are reenacted and amended, respectively, to read as if such sections were not enacted.