On July 22, 2026, the House narrowly approved the FY27 National Defense Authorization Act (H.R. 8800) by a vote of 216 to 212, sending the measure to the Senate. Tucked inside the massive defense policy bill are two amendments that, together, amount to the broadest rewrite of federal maritime law in a generation.
A New Shipbuilding and Governance Framework
The first amendment, sponsored by Seapower Subcommittee Chair Trent Kelly (R-MS), reworks the “Shipbuilding and Harbor Infrastructure for Prosperity and Security for America Act.” Among its most notable features, the bill would create a new maritime security advisor position within the Executive Office of the President to lead a Maritime Security Board and coordinate the country’s overall maritime strategy. It also sets up a Maritime Security Trust Fund, capped at $20 billion, to support shipbuilding and the broader industrial base, with actual funding left to future budget requests.
On cargo preference, the amendment would push the government cargo requirement from 50 percent to a full 100 percent, consolidate waiver decisions with the Maritime Administrator, and create a new “Ship America Office” to oversee compliance. A related grant program would direct federal dollars toward vessel construction and shipyard investment, subject to Buy America restrictions. The bill would also rewrite parts of the 1851 Limitation of Liability Act, imposing a higher liability cap on foreign vessel owners than on US owners, and would extend Federal Maritime Commission oversight of unfair practices to passenger fares. More than 20 sections focus on workforce development, covering education funding, mariner recruitment, and career retention.
Coast Guard and a New Commercial Cargo Regime
The second amendment, introduced by Coast Guard Subcommittee Chair Mike Ezell (R-MS), implements several proposals drawn from the administration’s Maritime Action Plan. It expands the Federal Ship Financing Program to cover vessel retrofitting and updates key definitions used to evaluate financing applications, opening the door to first-time eligibility for certain fishing vessels. It also increases funding for maritime innovation programs and adds new Buy America sourcing requirements for Coast Guard equipment procurement.
Most significantly, this amendment would create the first mandatory US-flag participation rule reaching into private commercial shipping, covering containerized cargo and roll-on/roll-off vehicles. Participation would phase in gradually, with US-content requirements rising over time, and foreign-influenced vessel owners would need an approved security agreement with US-citizen oversight to take part.
Looking Ahead
With the Senate yet to advance its own version, negotiators are expected to move directly to conference talks once Congress reconvenes in September. Given the range of issues at stake, from governance and cargo rules to shipbuilding finance and vessel security, conference is a critical opportunity to shape how these provisions are reconciled. We will continue tracking this legislation and are available to help clients evaluate its potential impact. For more information about this update, contact Liskow attorneys Leon Rittenberg III and Kevin Naccari, and visit Liskow’s Tax Practice page.