S.Amdt. 6377

SA 6377. Mr. KELLY (for himself and Mr. Young) submitted an amendment
intended to be proposed by him to the bill S. 4784, to authorize
appropriations for fiscal year 2027 for military activities of the
Department of Defense, for military construction, and for defense
activities of the Department of Energy, to prescribe military personnel
strengths for such fiscal year, and for other purposes; which was
ordered to lie on the table; as follows:

At the appropriate place in title X, insert the following:

SEC. __. UNITED STATES GOVERNMENT CARGO.

(a) Sense of Congress.--It is the sense of the Congress
that--
(1) only the Maritime Administrator, acting in the
Administrator's capacity as Director of the National Shipping
Authority, has the authority to determine the non-
availability of qualified capacity of vessels of the United
States (referred to in this subsection as ``qualified United
States flag capacity'') at fair and reasonable rates for
commercial vessels of the United States to meet the
requirements of section 55305 or 55314 of title 46, United
States Code;
(2) the requirements of section 55305 or 55314 of title 46,
United States Code, may only be waived temporarily by the
President, the Secretary of Defense, the Secretary of State,
or the Secretary of Transportation during a declared
emergency justifying such a temporary waiver, following a
determination by the Maritime Administrator, acting in the
Maritime Administrator's capacity as Director of the National
Shipping Authority, of the non-availability of qualified
United States flag capacity at fair and reasonable rates for
commercial vessels of the United States pursuant to section
55305(d) of title 46, United States Code; and
(3) nothing in title II of the Food for Peace Act (7 U.S.C.
1721 et seq.) authorizes an agency to waive the requirements
of section 55305 or 55314 of title 46, United States Code,
without first obtaining--
(A) delegated authority from the President of the United
States;
(B) an emergency declaration justifying such a temporary
waiver, pursuant to section 55305(d) of title 46, United
States Code; and

[[Page S3507]]

(C) a determination by the Maritime Administrator, acting
in the Maritime Administrator's capacity as Director of the
National Shipping Authority, on the non-availability of
qualified United States flag capacity at fair and reasonable
rates for commercial vessels of the United States pursuant to
section 55305(d) of title 46, United States Code.
(b) Applicable Percentage.--
(1) In general.--Section 55305(a) of title 46, United
States Code, is amended by striking ``at least 50'' and
inserting ``100''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on the date that is 180 days after the date
of enactment of this Act.
(c) Waiver.--
(1) In general.--Section 55305(d)(1) of title 46, United
States Code, is amended to read as follows:
``(1) Waiver authority.--
``(A) In general.--Notwithstanding any other provision of
law, when the President, the Secretary of Defense, the
Secretary of State, or the Secretary of Transportation
declares the existence of an emergency justifying a temporary
waiver of this section or section 55314 of this title, the
President, the Secretary of Defense, the Secretary of State,
or the Secretary of Transportation, following a determination
by the Maritime Administrator, acting in the Administrator's
capacity as Director, National Shipping Authority, of the
non-availability of qualified United States flag capacity at
fair and reasonable rates for commercial vessels of the
United States to meet the requirements of this section or
section 55314 of this title, may waive compliance with such
section to the extent, in the manner, and on the terms the
Maritime Administrator, acting in such capacity, prescribes,
and no other waivers of the requirements of this section or
section 55314 of this title shall be authorized.
``(B) Interagency agreement for the determination of non-
availability.--
``(i) In general.--Not later than 180 days after the date
of enactment of the SHIPS for America Act of 2026, the
Maritime Administrator shall facilitate an interagency
agreement with the head of each agency subject to the
requirements of subsection (a).
``(ii) Contents.--Each interagency agreement shall
include--

``(I) an explanation of the process the agency shall follow
to request a determination of non-availability by the
Maritime Administrator under subparagraph (A);
``(II) a standard process that the Maritime Administrator
shall follow for making such a determination of non-
availability; and
``(III) deadlines--

``(aa) for when an agency shall submit a request for such a
determination of non-availability prior to the transportation
of equipment, materials, or commodities subject to subsection
(a); and
``(bb) for when the Maritime Administrator shall make such
a determination of non-availability after receiving a request
for a temporary waiver under subparagraph (A).
``(iii) Congressional notification.--The Secretary of
Transportation shall notify the Committee on Commerce,
Science, and Transportation of the Senate and the Committee
on Transportation and Infrastructure of the House of
Representatives--

``(I) when each interagency agreement required under this
subparagraph is finalized; and
``(II) any time that an interagency agreement required
under this subparagraph is updated.''.

(2) Conforming amendments.--Section 55305(d) of title 46,
United States Code, is amended--
(A) in paragraph (3)(B) by striking ``or the Secretary of
Defense'' and inserting ``, the Secretary of Defense, or the
Secretary of State''; and
(B) in paragraph (4)(B)(i), by inserting ``or the Secretary
of State'' after ``the Secretary of Defense''.
(d) Regulations and Guidance.--Not later than 1 year after
the date of enactment of this Act, the Maritime
Administrator, notwithstanding any other provision of law,
regulation, or administrative order, shall--
(1) promulgate regulations under chapter 553 of title 46,
United States Code, to fully implement and ensure compliance
with sections 55305, 55314, 55315, and 55316 of such title;
(2) issue interagency guidance to other Federal departments
and agencies on how to administer the programs that are
subject to such sections in accordance with those sections,
as applicable; and
(3) publish such guidance in the Federal Register and on
the website of the Maritime Administration.
(e) Consultation.--The Administrator may consult with the
Food Aid Consultative Group established by section 205 of the
Food for Peace Act (7 U.S.C. 1725) in carrying out this
section.
(f) Repeal of Earlier Regulatory Deadline.--Subsection (a)
of section 3502 of the James M. Inhofe National Defense
Authorization Act for Fiscal Year 2023 (46 U.S.C. 55305 note;
Public Law 117-263) is repealed.
(g) Audit Required.--Section 55301 of title 46, United
States Code, is amended--
(1) in subsection (a)(2), by striking ``section 55305'' and
inserting ``sections 55305, 55314, 55315, and 55316''; and
(2) by adding at the end the following:
``(d) Notification of Violation.--The Maritime
Administrator shall--
``(1) upon receiving any credible information, as
determined by the Administrator, that a shipment of a Federal
department or agency covered by a report required under
subsection (a) was not in compliance with the requirements of
section 55305, 55314, 55315, or 55316 of this title (as
applicable), notify the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on
Transportation and Infrastructure of the House of
Representatives not later than 14 days after receiving such
information; and
``(2) upon receiving any credible information, as
determined by the Administrator, that a Federal department or
agency that administers a program covered by a report
required under subsection (a) was not in compliance with the
requirements of section 2631 of title 10, United States Code,
notify the Committee on Commerce, Science, and Transportation
and the Committee on Armed Services of the Senate and the
Committee on Transportation and Infrastructure and the
Committee on Armed Services of the House of Representatives
not later than 14 days after receiving such information.''.
(h) Financing the Transportation of Agricultural Products
and Other Cargo.--Subchapter II of chapter 553 of title 46,
United States Code, is amended by inserting after section
55315 the following:

``Sec. 55316. Financing the transportation of agricultural
products and other cargo

``(a) Financing of Increased Costs.--Subject to the
availability of appropriations, the Secretary of
Transportation shall finance any reasonable increased ocean
freight costs, as assessed by the Maritime Administrator,
incurred in any fiscal year by a covered agency that result
from the application of section 55305 of this title,
including the application of such section to the activities
specified in section 55314(b) of this title.
``(b) Reimbursement of Increased Costs.--
``(1) In general.--The Secretary of Transportation shall
reimburse a covered agency for the amount by which, in any
fiscal year--
``(A) the total cost of ocean freight and ocean freight
differential for which obligations are incurred by the
covered agency under section 55305 of this title, including
pursuant to the application of such section to the activities
specified in section 55314(b) of this title; exceeds
``(B) 20 percent of the total value of the cargo, including
agricultural products, transported under such section 55305,
including pursuant to the application of such section to such
activities, and the cost of the ocean freight and ocean
freight differential, as assessed by the Maritime
Administrator, on which obligations are incurred by the
covered agency during that fiscal year.
``(2) Agricultural products shipped from inventory.--For
purposes of this subsection, agricultural products shipped
from the inventory of the Commodity Credit Corporation shall
be valued as provided in section 412(d) of the Food for Peace
Act (7 U.S.C. 1736f(d)).
``(c) Interagency Agreement.--
``(1) In general.--Not later than 180 days after the date
of enactment of the SHIPS for America Act of 2026, the
Secretary of Transportation shall enter into an interagency
agreement with the head of each covered agency.
``(2) Contents.--Each interagency agreement shall include--
``(A) an explanation of the process the covered agency
shall follow to receive a reimbursement from the Secretary of
Transportation under this section;
``(B) a standard methodology for calculating the
reimbursement a covered agency is entitled to under this
section; and
``(C) deadlines--
``(i) by which a covered agency shall submit a
reimbursement request in order to receive reimbursement; and
``(ii) by which the Secretary of Transportation shall
approve a properly filed reimbursement request, which date
shall not be more than 90 days after the date on which the
reimbursement request is submitted.
``(3) Congressional notification.--The Secretary of
Transportation shall notify the appropriate committees of
Congress--
``(A) when each interagency agreement required under this
subsection is finalized; and
``(B) any time that an interagency agreement required under
this subsection is updated.
``(d) Audit Required.--
``(1) In general.--For each fiscal year, the Inspector
General of the Department of Transportation shall conduct an
audit of all reimbursements made by the Secretary of
Transportation under this section during such fiscal year to
ensure all such reimbursements were made in accordance with
the requirements of this section.
``(2) Documents required.--Each covered agency entitled to
reimbursement under subsection (b) shall--
``(A) provide to the Inspector General any documents or
other information requested by the Inspector General in order
to complete the audit, including the information described in
subparagraph (B); and
``(B) require any party that enters into a contract with
such covered agency related to the implementation of section
55305 of this title, or any activities specified in section
55314(b) of this title, to provide the covered agency, as a
condition for entering into such contract, with information
relevant for the audit as determined by the Inspector
General.

[[Page S3508]]

``(3) Report.--Not later than 90 days after the end of each
fiscal year, the Inspector General shall submit a report
detailing the findings of such audit with respect to such
fiscal year to the appropriate committees of Congress and
make the report publicly available.
``(e) Definitions.--In this section:
``(1) Agricultural product.--The term `agricultural
product' has the meaning given the term in section 55314(c)
of this title.
``(2) Appropriate committees of congress.--The term
`appropriate committees of Congress' means the Committee on
Commerce, Science, and Transportation of the Senate and the
Committee on Transportation and Infrastructure of the House
of Representatives.
``(3) Covered agency.--The term `covered agency' means any
agency that administers an activity specified in section
55314(b) of this title.''.
(i) Applicability.--Section 55314 of title 46, United
States Code, is amended--
(1) by inserting before subsection (b) the following:
``(a) Applicability.--The requirements under section 55305
of this title shall apply with respect to the activities
specified in subsection (b).'';
(2) in subsection (b)--
(A) in the matter preceding paragraph (1), by striking
``Secretary of Agriculture or the Commodity Credit
Corporation'' and inserting ``Federal Government'';
(B) in paragraph (1), by striking ``the Food for Peace Act
(7 U.S.C. 1691 et seq.)'' inserting ``titles I, II, or III of
the Food for Peace Act (7 U.S.C. 1701 et seq.)'';
(C) in paragraph (4), by striking ``agricultural
commodities or their products'' and inserting ``agricultural
products'';
(D) in paragraph (5), by striking ``agricultural
commodities or their products'' and inserting ``agricultural
products'';
(E) in paragraph (6), by striking ``agricultural
commodities or their products'' and inserting ``agricultural
products'';
(F) in paragraph (7), by striking ``agricultural
commodities'' and inserting ``agricultural products'';
(G) by redesignating paragraphs (4), (5), (6), and (7) as
paragraphs (6), (7), (8), and (9), respectively; and
(H) by inserting after paragraph (3) the following:
``(4) carried out under the Food for Progress Act of 1985
(7 U.S.C. 1736o);
``(5) carried out under the McGovern-Dole International
Food for Education and Child Nutrition Program under section
3107 of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 1736o-1);''; and
(3) by adding at the end the following:
``(c) Agricultural Product Defined.--In this section, the
term `agricultural product' means any food product, including
an agricultural commodity (as such term is defined in section
402 of the Food for Peace Act (7 U.S.C. 1732)), specialty
crop (as such term is defined in section 3 of the Specialty
Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note)), or
processed food product, exported from the United States.''.
(j) Clarifying Amendments.--
(1) Agricultural commodities emergency assistance
clarification.--Section 202(a) of the Food for Peace Act (7
U.S.C. 1722(a)) is amended by striking ``Notwithstanding''
and inserting ``Subject to the requirements of sections 55305
and 55314 of title 46, United States Code, and
notwithstanding''.
(2) Administrative provisions clarification.--Section
407(b)(2)(A) of the Food for Peace Act (7 U.S.C.
1736a(b)(2)(A)) is amended by striking ``Notwithstanding''
and inserting ``Subject to the requirements of sections 55305
and 55314 of title 46, United States Code, and
notwithstanding''.
______