On April 9, 2025, the President issued Executive Order 14629, a sweeping initiative to rebuild the United States’ commercial shipbuilding industry, revitalize its maritime workforce, and reclaim its role as a global leader in maritime logistics and security. This order carries significant implications for shipbuilders, cargo operators, port authorities, marine investors, and maritime contractors.
Issued in the wake of mounting concerns over U.S. dependence on foreign shipbuilders—particularly China—the order calls for an all-of-government strategy to reclaim control over America’s maritime future. Here’s a detailed look at what the Executive Order entails and how it’s expected to impact the sector:
Maritime Action Plan (Sec. 3)
A centerpiece of the Order is the creation of a Maritime Action Plan (MAP), to be developed within 210 days by the Assistant to the President for National Security Affairs, in coordination with Cabinet-level departments (Defense, Commerce, Transportation, Homeland Security, Labor, State, Education) and other agencies. The MAP is designed to become the federal government’s maritime playbook—aligning funding, legislation, regulatory reform, and workforce initiatives under one coordinated strategy. The Office of Management and Budget will lead the fiscal and legislative alignment, while the MAP itself will incorporate actions outlined in 18 specific sections of the Order.
Reviving the Industrial Heart of U.S. Maritime (Sec. 4)
The Order begins by tackling the Maritime Industrial Base, which it acknowledges has suffered from decades of disinvestment. Federal agencies, led by the Department of Defense, are directed to explore use of Defense Production Act authorities and Office of Strategic Capital tools to incentivize investment in shipyards, marine repair, port infrastructure, and supply chains.
The goal is to catalyze both public and private capital to rebuild the physical and workforce infrastructure required to make U.S. shipbuilding economically viable again. Agencies must prioritize projects based on taxpayer return-on-investment, commercial and military value, and long-term workforce benefits.
Responding to China’s Dominance in Shipbuilding (Sec. 5)
One of the most pointed sections of the Order directly addresses China’s aggressive targeting of global shipbuilding and logistics sectors. The U.S. Trade Representative is empowered to advance its Section 301 investigation and potentially impose tariffs or other trade actions on PRC-linked cargo equipment, particularly cranes and handling devices.
These measures reflect growing bipartisan concern that China’s subsidized shipbuilding poses both an economic and national security threat—especially at strategic ports. Legal and compliance implications for maritime importers and logistics clients will be significant.
Closing Loopholes in U.S. Port Fee Collections (Sec. 6)
For years, cargo routed through Canadian or Mexican ports has offered a backdoor around the Harbor Maintenance Fee. This Order closes that loophole. The Department of Homeland Security is instructed to require that all foreign cargo entering the U.S.—whether directly or via land borders—be subject to full Customs and Border Protection (CBP) processing and applicable fees. If cargo is not “substantially transformed” before entering from Canada or Mexico, it will face not only full HMF charges but also an added 10% service fee to offset enforcement costs.
Turning to Allies for Maritime Investment and Trade Alignment (Secs. 7 & 8)
Recognizing that rebuilding U.S. maritime capacity can’t be done in isolation, the Order calls for coordinated engagement with allies and partners. The Departments of State and Commerce, along with the Trade Representative, are tasked with aligning global trade policies related to the maritime sector—including coordinated tariffs or parallel enforcement efforts.
Simultaneously, the Department of Commerce is directed to explore investment incentives for allied shipbuilders willing to open facilities or fund upgrades in the United States—particularly those that bolster U.S. shipyard capacity.
Creating a Sustainable Funding Engine: The Maritime Security Trust Fund (Sec. 9)
One of the more transformative proposals involves the creation of a Maritime Security Trust Fund, administered through the Office of Management and Budget and supported by the Department of Transportation. This dedicated funding source would provide stable, long-term capital for the programs under the MAP—reducing reliance on annual budget negotiations and increasing predictability for industry partners. The fund could be sourced from existing tariff revenues, penalties, fees, or future maritime excise tax reforms.
A New Investment Program for U.S. Shipbuilding (Sec. 10)
The Order directs the Department of Transportation to propose a new shipbuilding incentives program, one that offers greater flexibility than current initiatives like the Small Shipyard Grant Program or Title XI Federal Ship Financing. Potential support mechanisms include capital improvement grants, vessel construction loans, and guarantees that comply with the Federal Credit Reform Act. This is designed to create a reliable financing environment for commercial shipyards and repair facilities ready to modernize or scale operations.
Establishing Maritime Prosperity Zones (Sec. 11)
To draw new capital to historically overlooked areas, the administration proposes the establishment of Maritime Prosperity Zones—tax-advantaged investment areas modeled on the Opportunity Zones created in 2017. These would include non-coastal and inland regions, such as the Great Lakes and Mississippi River corridors, which have untapped industrial potential. The Departments of Commerce, Treasury, Transportation, and Homeland Security will jointly develop the plan.
Reinforcing U.S. Cargo Shipping and Preference Laws (Sec. 12)
The Department of Transportation is charged with preparing a full inventory of federal programs, cargo preference laws, and tax/regulatory tools that can be used to grow domestic shipping. This includes programs like the Maritime Security Program, Tanker Security Program, and various maritime academy supports.
It also calls for a review of cargo preference waiver processes to ensure more U.S.-flagged and built vessels are being used in federal shipping contracts, especially in military logistics.
Modernizing Mariner Training and Expanding Educational Pipelines (Sec. 13)
Executive Order 14269 calls for a comprehensive review and reform of the nation’s mariner training and credentialing systems.
Within 90 days, a coalition of federal agencies—including the Departments of State, Defense, Labor, Transportation, Education, and Homeland Security—is required to deliver a coordinated report with recommendations to address workforce challenges in the maritime sector. These recommendations will focus on aligning educational institutions, technical training programs, and credentialing pathways with the anticipated national demand.
Reviving the U.S. Merchant Marine Academy (Sec. 14)
The United States Merchant Marine Academy (USMMA) is slated for urgent upgrades. Within 30 days, the Department of Transportation must begin deferred maintenance projects and finalize a long-term facilities master plan, followed by a five-year capital improvement plan in coordination with the Department of Government Efficiency. These steps are framed as essential to ensure the U.S. maintains a world-class maritime education institution.
Streamlining Ship Procurement and Deregulating Bottlenecks (Secs. 15 & 16)
A recurring complaint from U.S. shipbuilders is procurement complexity and regulatory drag. The Order addresses this by requiring the Departments of Defense, Commerce, Homeland Security, and the National Science Foundation to propose reforms that:
- Reduce design and review delays
- Encourage modular shipbuilding
- Rely more on commercial acquisition practices and broad industry standards
Concurrently, agencies must conduct internal reviews to identify deregulatory opportunities, aligned with Executive Order 14192, to eliminate red tape that blocks innovation or raises costs unnecessarily.
Reinforcing Strategic Capacity: Fleet and Arctic Readiness (Secs. 17 – 21)
To ensure maritime readiness in times of crisis and position the U.S. as a global leader in strategic waterways, the Executive Order outlines several initiatives designed to expand and reinforce the operational fleet.
Growing the U.S.-Flagged Fleet (Section 17)
The Department of Transportation, in coordination with the Department of Defense, is required to propose a legislative framework that increases the number of U.S.-flagged commercial vessels available for international trade. The goal is to ensure sufficient tonnage and cargo capacity under the U.S. flag that can be rapidly mobilized during national emergencies.
- Incentives under consideration include:
- Subsidies to encourage construction of militarily useful commercial ships;
- Expanded financial support for modifications that make commercial vessels deployable for defense purposes;
- Policies that boost the number of U.S.-built, crewed, and flagged vessels participating in global trade.
Securing Arctic Waterways (Section 18)
With Arctic shipping routes becoming more navigable due to climate change, the Departments of Defense, Transportation, and Homeland Security, along with the U.S. Coast Guard, are instructed to develop a national Arctic Maritime Strategy. This strategy will define the vision, goals, and risk posture necessary to secure these high-stakes transit lanes and support future economic activity in the region.
Shipbuilding Capacity Review (Section 19)
The Order mandates a review of federal shipbuilding for the Army, Navy, and Coast Guard, to identify ways to:
- Increase competition among domestic shipbuilders;
- Reduce systemic cost overruns and production delays;
- Expand participation in subsurface, surface, and unmanned vessel programs.
Separate, prioritized recommendations for each branch must be submitted to the President within 45 days.
Inactive Reserve Fleet Assessment (Section 21)
Finally, to guarantee strategic readiness, the Department of Defense must review and issue guidance on the maintenance, mobilization, and funding structure of the U.S. inactive reserve fleet. This review will inform future MAP decisions to ensure that reserve vessels are prepared for activation in times of conflict or disaster.
Closing Observations
Executive Order 14269 is perhaps the most ambitious federal directive aimed at rebuilding American maritime capacity since World War II. It addresses infrastructure, policy, law, workforce, and trade in a single integrated blueprint.
It also creates opportunities—particularly in financing, infrastructure modernization, ship procurement, and cargo law compliance—for companies operating across the shipping, port operations, defense contracting, and educational sectors.
Industry stakeholders should begin preparing for rapid federal engagement, new funding pathways, and heightened enforcement of trade and cargo preference laws.