Amend section 1151 of title 14, United States Code, to modify the restriction on construction of Coast Guard vessels in foreign shipyards.

Summary

Amends the law that generally bars construction of certain U.S. vessels in foreign shipyards by creating two narrow exception paths. One path lets the President authorize foreign construction on national security grounds when an allied foreign yard offers lower cost and faster delivery and has recent demonstrated capacity; Congress is notified and has a 30-day window before contracts may proceed. The second path allows the Department to buy completed vessels from allied foreign yards if the foreign government provides a warranty to the U.S. Government. The changes target ship procurement rules to allow faster or cheaper access to vessels from NATO or certain Indo‑Pacific treaty partners while keeping conditions intended to protect U.S. interests, require interagency coordination, and include congressional notice and warranty requirements.

• Creates two limited exceptions to the U.S. ban on building certain federal vessels in foreign shipyards: a presidential national-security exception and an acquisition-of-completed-vessel exception.
• Both exceptions are restricted to shipyards in NATO countries or countries party to an active U.S. defense treaty in the Indo‑Pacific.
• The presidential exception requires certification that foreign construction is cheaper, significantly faster (domestic timeline >18 months longer), and that the foreign yard has recent demonstrated capacity.
• The President must notify Congress of certifications and wait 30 days after notice before contracts under the presidential exception can proceed.
• The acquisition exception permits purchase of completed foreign-built vessels only when the foreign government agrees to a warranty with the U.S. Government.
• Aims to shorten delivery times or reduce costs for vessel procurement while preserving controls through allied-only limits, certification, warranty, and congressional notice.
• Could increase competition for domestic shipyards and potentially reduce costs and delivery times for some vessel procurements.
• Raises tradeoffs between domestic industrial base preservation and operational/financial flexibility for federal vessel acquisition.