Sponsors (4)
Last progress June 9, 2025 (8 months ago)
Introduced on June 9, 2025 by Mike Ezell
Creates or updates rules for Capital Construction Funds for U.S. vessel owners/lessees and marine terminal operators to save and use money for U.S.-built vessels and cargo-handling equipment. It defines what counts as allowable withdrawals and adds limits on automated equipment and bans purchases of certain cranes made in the People’s Republic of China, plus it requires an annual Federal Register request for information on availability of U.S.-manufactured cargo handling equipment.
Strikes subsection (a) of Section 53503 of title 46, United States Code, and inserts new subsection (a) containing two new provisions allowing agreements to establish capital construction funds.
A citizen of the United States owning or leasing an eligible vessel may make an agreement with the Secretary under this chapter to establish a capital construction fund for the vessel.
An operator of a United States marine terminal may make an agreement with the Secretary under this chapter to establish a capital construction fund for the marine terminal.
Strikes subsection (b) of Section 53503 of title 46, United States Code, and inserts a new subsection (b) titled 'Allowable purpose' that defines permissible uses of the capital construction fund.
Allows the capital construction fund to be used for replacement vessels, additional vessels, or reconstructed vessels that are built in the United States and documented under U.S. law for operation in the foreign or domestic trade of the United States.
Who is affected and how:
Vessel owners and lessees: Gain clearer statutory authority to establish and use Capital Construction Funds to finance construction, rebuilding, or purchase of qualified U.S.-built vessels and related equipment; subject to new limits and compliance requirements.
Marine terminal operators and port authorities: Can use CCFs for cargo-handling equipment acquisition but face new constraints if equipment automation would result in net job losses; must monitor RFI findings on domestic equipment availability.
Cargo handling equipment manufacturers (domestic and foreign): Domestic manufacturers could see increased demand because of the emphasis on U.S.-manufactured equipment and the annual RFI; suppliers in the People’s Republic of China are explicitly excluded for certain crane purchases, reducing their eligibility for CCF-funded sales.
Terminal and dock workers: Potential protections from job loss via the job-impact restriction on automated equipment purchased with CCF funds; however, enforcement and scope of ‘‘net job loss’’ determinations will shape outcomes.
Federal agencies (particularly the Department/Secretary designated to administer the CCF program): Will need to issue guidance, run annual RFIs, perform job‑impact determinations, and enforce the crane-purchase prohibition; this may create administrative workload and require technical criteria.
Financial institutions and lenders: May see changes in demand for loans that can be repaid with CCF withdrawals and must coordinate with CCF holders on allowable uses.
Overall effect: The bill nudges CCF-financed investment toward U.S.-built vessels and domestically manufactured cargo equipment, places new labor-protecting checks on automation purchases using federal-favored funds, and adds a regular information-gathering requirement to support sourcing decisions. The exact operational and economic impacts will depend on implementing regulations, the definition and measurement of ‘‘net job loss,’’ and the absent numerical ceilings or effective dates not included in the provided text.
Referred to the House Committee on Transportation and Infrastructure.