Posted: November 30, 2015

Temporary increase in MSP funding authorized as defense act is signed into law


President Obama on November 25 signed into law the National Defense Authorization Act for Fiscal Year 2016, a bill that authorizes an increase in funding for the Maritime Security Program and its fleet of 60 U.S.-flagged ships during fiscal year 2016.

Although the National Defense Authorization Act (S.1356) authorizes a funding increase for the MSP, Congress would still need to appropriate the money in separate legislation.

S.1356 includes other provisions important to the U.S. maritime industry and merchant marine and their roles in national security and defense.

A provision in the legislation authorizes an increase in the annual allotment for each ship enrolled in the MSP from $3.1 million to $3.5 million during fiscal year 2016. The provision was introduced by Congressman Duncan Hunter (R-CA), vice chairman of the Armed Services Committee's Seapower and Projection Forces Subcommittee and chairman of the Transportation and Infrastructure Committee's Subcommittee on Coast Guard and Maritime Transportation. The inclusion of the MSP provision was made possible by the crucial support of Chairman of the Armed Services Committee Rep. Mac Thornberry (R-TX), Ranking Member on the Armed Services Committee Rep. Adam Smith (D-WA), Chairman of the Seapower and Projection Forces Subcommittee Rep. Randy Forbes (R-VA), Ranking Member on the Seapower and Projection Forces Subcommittee Rep. Joe Courtney (D-CT), and Rep. Rick Larsen (D-WA), who serves on the Armed Services Committee and Seapower and Projection Forces Subcommittee.

Regarding the MSP, S.1356 states: "It is the sense of Congress that dedicated and enhanced support is necessary to stabilize and preserve the Maritime Security Fleet program, a program that provides the Department of Defense with on-demand access to world class, economical commercial sealift capacity, assures a United States-flag presence in international commerce, supports a pool of qualified United States merchant mariners needed to crew United States-flag vessels during times of war or national emergency, and serves as a critical component of our national security infrastructure."

Separately, among the maritime provisions included in the act, S.1356 authorizes the expenditure of $5 million by the Maritime Administration "for the National Security Multi-Mission Vessel Design," which in the future could be used to produce new multi-purpose training ships for the state maritime academies and the U.S. Merchant Marine Academy - ships that could also be used in defense sealift and humanitarian crisis missions domestically and abroad.

S.1356 was approved 370-58 by the House of Representatives on November 5 and 91-3 by the Senate on November 10. A previous version of this legislation was vetoed by the President in October due to concerns that did not involve the maritime provisions in the bill.