This bill would create an exception to the federal law prohibiting the construction of Navy ships at foreign shipyards. Under current law, naval vessels must be built in the United States, but this legislation would allow the Navy to build ships in allied countries if the foreign shipyard is located in a NATO member country or an Indo-Pacific nation with a mutual defense treaty with the United States, and if doing so would cost less than building in a domestic shipyard. Before any ship or major ship component could be constructed overseas under this exception, the Secretary of the Navy would have to certify to Congress that the foreign shipyard is not owned or operated by a Chinese company or any multinational company based in China. The bill contains no specific funding amounts or implementation timeline.
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