Summary

Creates a narrow exception allowing the Navy to have new naval vessels built in certain allied or partner foreign shipyards when doing so is cheaper than building them in U.S. yards, and requires a pre‑construction certification to Congress that the foreign yard is not owned or operated by Chinese firms or by a multinational company domiciled in the People’s Republic of China. The change adjusts the statutory prohibition on foreign construction to permit work in NATO countries or Indo‑Pacific mutual‑defense partners under those conditions.

• Creates a narrow exception to the ban on foreign construction of naval vessels for yards in NATO or Indo‑Pacific mutual‑defense partners if foreign work is cheaper than U.S. work.
• Requires the Secretary of the Navy to certify to Congress that the foreign shipyard is not owned/operated by Chinese firms or by a multinational domiciled in the People’s Republic of China before construction begins.
• Limits foreign construction by both location (allies/partners) and cost competitiveness (must be less expensive than domestic construction).
• Does not change funding levels or broadly alter procurement policy—it adds a procedural and ownership safeguard to permit specific foreign builds.
• Focuses on ownership and domicile of the shipyard operator to reduce perceived security risks from Chinese ownership or control.
• Applies only when the Secretary certifies the ownership conditions and cost comparison—no automatic or blanket authorization for foreign shipbuilding.
• Does not enumerate specific vessel classes or quantities eligible; determinations are case‑by‑case under the stated criteria.
• Modifies statutory text to add the new exception and certification requirement to existing law.