This bill allows the President to authorize the construction of Coast Guard vessels in foreign shipyards under limited circumstances, which would otherwise be prohibited by federal law. The foreign shipyard must be located in a NATO member country or an Indo-Pacific nation with a mutual defense treaty with the United States, and building the vessel overseas must cost less than building it domestically. Before any contract can be signed, the President must notify Congress and wait 30 days, and the Coast Guard Commandant must certify that the foreign shipyard is not owned or controlled by Chinese companies. The legislation effectively creates a national security exception to the domestic shipbuilding requirement, giving the President flexibility to reduce costs while maintaining safeguards against using Chinese-affiliated facilities.
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