According to a summary of the fiscal 2027 National Defense Authorization Act released by the Senate Armed Services Committee on Tuesday, the bill would authorize the procurement of up to two bulk fuel carriers or strategic sealift vessels from overseas shipyards.
The proposal would permit limited overseas construction only in allied countries.
Federal law currently prohibits the overseas construction of Navy vessels, but the NDAA provision would effectively create an exception for certain auxiliary ships rather than combat vessels.
The committee said foreign investment in the U.S. maritime industrial base would be required to bring the production of follow-on vessels and related supply chains back to the United States.
The measure appears intended to accelerate ship procurement in the short term while strengthening the U.S. shipbuilding industry over the longer term.
A similar move is under discussion in the House of Representatives.
A draft fiscal 2027 defense spending bill prepared by the House Appropriations Committee’s defense subcommittee would narrow the ban on using federal funds for overseas ship construction from all naval vessels to combat vessels.
The Senate and House bills must pass their respective chambers and then be reconciled before being sent to the president for signature.
The congressional push comes as Washington seeks to acquire ships more quickly amid intensifying maritime competition with China.
The United States has struggled with weakened shipbuilding capacity, while rebuilding the industry is expected to take years.
South Korean shipbuilders could therefore play a role in constructing U.S. Navy auxiliary vessels and supporting efforts to rebuild America’s shipbuilding industry.
The development could also support broader South Korea-U.S. shipbuilding cooperation, including the $150 billion Make American Shipbuilding Great Again, or MASGA, initiative.
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