On October 29, 2026, a bipartisan group of 119 members of Congress sent a letter to House and Senate leadership. They want the SHIPS for America Act kept, and expanded, in the final fiscal year 2027 National Defense Authorization Act (NDAA). If you move freight in or out of the United States, this affects you.
What Happened
The letter was led by Reps. Trent Kelly (R-MS) and John Garamendi (D-CA) and Sens. Todd Young (R-IN) and Mark Kelly (D-AZ), the bill's sponsors. It was addressed to House Speaker Mike Johnson, Senate Majority Leader John Thune, House Minority Leader Hakeem Jeffries and Senate Minority Leader Chuck Schumer.
The House-passed NDAA (H.R. 8800) already contains parts of the act under Title XXXVI, and the letter says the House agreed to them unanimously. The lawmakers call that "a necessary start." They want those provisions kept in the final bill and want Congress to look again at measures left out of the House version.
Signers included both parties and both chambers, among them Senators Susan Collins, Elizabeth Warren, Amy Klobuchar, Katie Britt and John Fetterman. They also included John Moolenaar, chairman of the House Select Committee on China. The final scope of maritime reforms in the NDAA is still unresolved.
Why Lawmakers Are Pushing: The Numbers
The letter cites figures on the gap between the U.S. and its Asian competitors:
China, South Korea and Japan together build more than 90% of the world's ships by tonnage. The United States builds less than 1%.
Fewer than 100 U.S.-flagged vessels take part in international commerce. China's fleet is estimated at more than 5,500 ships.
The lawmakers' security argument is that, in a prolonged conflict, a strong U.S. Merchant Marine crewed by American mariners would be critical for moving supplies.
What the SHIPS for America Act Would Do
SHIPS stands for Shipbuilding and Harbor Infrastructure for Prosperity and Security. The act was reintroduced in 2025, and the Senate version is S. 1541. Based on the bill summaries, its main pieces are:
A Strategic Commercial Fleet. The goal is to add up to 250 U.S.-flagged, U.S.-crewed commercial vessels to international trade over about a decade. These would be commercially viable ships that are also useful to the military, with renewable seven-year operating agreements.
A Maritime Security Trust Fund. It would work like the Highway Trust Fund. It would be financed by certain tonnage taxes, duties, penalties and seizure proceeds, capped at $20 billion, and used for shipyards, ports and maritime programs through 2035.
Federal oversight. A White House Maritime Security Advisor and a Maritime Security Board would lead a national maritime strategy.
Shipyard and workforce support. This covers funding for small shipyards, financing for shipbuilding, maritime innovation programs, and training for mariners and shipyard workers.
Tax incentives. The bill includes investment tax credits meant to encourage building ships in America.
Provisions can change as the bill moves through Congress, so check the latest text before you plan around any specific number.
What It Means for U.S. Shippers, Importers and Exporters
The act is mainly about industrial and security policy, but it could affect logistics in several ways:
Cargo preference and U.S.-flag rules. Supporters want stronger use of U.S.-flag vessels for some cargo. Companies with government-linked or preference-eligible cargo should watch this closely.
Cost and capacity trade-offs. U.S.-flag ships generally cost more to operate than foreign ones. Shippers should watch whether new rules change rates or capacity on certain lanes.
Port and shipyard investment. Money for yards and harbor infrastructure could help over the long term, though not right away. Shipbuilding takes years.
Supply chain resilience. A bigger domestic fleet is meant to reduce dependence on foreign carriers and shipyards during a crisis.
Trade policy volatility. This effort sits beside other maritime measures. For example, the U.S. Trade Representative has proposed extending its suspension of port fees on China-linked vessels into January 2027.
What to Watch Next
NDAA negotiations. Watch whether House and Senate negotiators keep the Title XXXVI provisions and add any of the omitted measures.
The final bill. It still has to pass both chambers and reach the president's desk.
Implementation rules. If enacted, agencies such as the Maritime Administration would write the detailed rules, and these would shape costs for shippers.
The Bottom Line
The 119-lawmaker letter shows that rebuilding U.S. shipbuilding has support across party lines. Whether the SHIPS for America Act ends up in the final defense bill, and in what form, should become clear as NDAA negotiations finish. Logistics professionals should keep an eye on it now.
Stay tuned to LogisticsWall.com for updates as this develops.
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