Naval Vessel Construction Abroad: Exceptions for US Allies to Cut Costs
This bill allows the US Navy to build naval vessels in foreign shipyards, overriding a previous prohibition. The goal is to enhance naval readiness and reduce costs, indirectly impacting public spending and national security. Construction is permitted only in NATO or Indo-Pacific allied countries, provided the cost is lower than in the US and the shipyard is not controlled by China.
Key points
Prohibition exception: The US Navy can now authorize the construction of naval vessels in certain foreign shipyards.
Cost and Allies: This exception applies only if the construction is cheaper than in the US and takes place in NATO member countries or Indo-Pacific allies with a mutual defense treaty.
Security measure: A certification is required to ensure the foreign shipyard is not owned or operated by a Chinese company.
Expired
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