This bill increases domestic content requirements for Navy shipbuilding programs, requiring contractors to use more American-made components in their ships. The domestic content threshold starts at 65 percent of costs for 2026-2027, increases to 75 percent for 2028-2032, and reaches 100 percent by 2033. The requirements apply to all manufactured components except items made wholly or predominantly of iron and steel, and the Secretary of Defense can request waivers if costs increase by more than 25 percent, suitable alternatives aren't available, or it serves the public interest. The bill also requires the Defense Department to issue rules within 180 days on how to handle foreign-made components that are at least 55 percent American-made, and mandates annual reporting to Congress on tracking the country of origin for all manufactured content used in Navy shipbuilding, including items from subcontractors. These requirements begin January 1, 2026.
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