H.R. 3842

119th CONGRESS 1st Session

To amend title 46, United States Code, to include the replacement or purchase of additional cargo handling equipment as an eligible purpose for Capital Construction Funds, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES · June 9, 2025 · Sponsor: Mr. Ezell · Committee: Committee on Transportation and Infrastructure

Table of contents

• H.R. 3842
  • SEC. 1. Definitions of cargo handling equipment and marine terminal
  • SEC. 2. Establishing a capital construction fund
  • SEC. 3. Deposits and withdrawals
  • SEC. 4. Ceiling on deposits
  • SEC. 5. Qualified withdrawals
  • SEC. 6. Treatment of qualified withdrawals and basis of property
  • SEC. 7. FIFO and LIFO withdrawals
  • SEC. 8. Cargo handling equipment availability

SEC. 1. Definitions of cargo handling equipment and marine terminal

• Section 53501 of title 46, United States Code, is amended—
  • by redesignating—
  • by inserting after subsection (1), the following:
  • by inserting after subsection (4), as redesignated by paragraph (1), the following:

SEC. 2. Establishing a capital construction fund

• Section 53503 of title 46, United States Code, is amended—
  • (a) In general
    • 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.
  • by striking subsection (a) and inserting the following:
    • (b) Allowable purpose
      • The purpose of the agreement shall be to provide—
        • replacement vessels, additional vessels, or reconstructed vessels, built in the United States and documented under the laws of the United States, for operation in the foreign or domestic trade of the United States; or
        • replacement cargo handling equipment, additional cargo handling equipment, or reconstructed cargo handling equipment for operation at marine terminals in the United States.
  • by striking subsection (b) and inserting the following:

SEC. 3. Deposits and withdrawals

• Section 53504(b) of title 46, United States Code, is amended by inserting after .

SEC. 4. Ceiling on deposits

• Section 53505(a) of title 46, United States Code, is amended—
  • in subparagraph (1) by inserting after ;
  • in subparagraph (2) by inserting after ; and
  • in subparagraph (3) by inserting after both instances of .

SEC. 5. Qualified withdrawals

• Section 53509 of the title 46, United States Code, is amended—
  • (a) In general
    • Subject to subsections (b) and (c), a withdrawal from a capital construction fund is a qualified withdrawal if it is made under the terms of the agreement and is for—
      • the acquisition, construction, or reconstruction of—
        • a qualified vessel or a barge or container that is part of the complement of a qualified vessel; or
        • cargo handling equipment; or
      • the payment of the principal on indebtedness incurred in the acquisition, construction, or reconstruction of—
        • a qualified vessel or a barge or container that is part of the complement of a qualified vessel; or
        • cargo handling equipment.
  • by striking subsection (a) and inserting the following:
  • by redesignating subsection (c) as subsection (e); and
    • (c) Fully automated cargo handling equipment
      • No withdrawals may be made from a capital construction fund to purchase fully automated cargo handling equipment that is remotely operated or remotely monitored with or without the exercise of human intervention or control, if the Secretary determines such equipment would result in a net loss of jobs within a marine terminal.
    • (d) Prohibition on PRC cranes
      • No withdrawals may be made from a capital construction fund to purchase cranes manufactured in the People's Republic of China.
  • by inserting after subsection (b) the following:

SEC. 6. Treatment of qualified withdrawals and basis of property

• Section 53510 of title 46, United States Code, is amended—
  • in subsection (b) by inserting after both instances of ;
  • in subsection (c) by inserting after both instances of ; and
  • in subsection (d) by inserting after .

SEC. 7. FIFO and LIFO withdrawals

• Section 53512 of title 46, United States Code, is amended by adding after . cargo handling equipment, advanced

SEC. 8. Cargo handling equipment availability

• The Secretary shall annually publish in the Federal Register a request for information regarding the availability of cargo handling equipment manufactured in the United States and shall share the results of such request for information with capital construction fund holders.