Posted:
February 21, 2019
President Trump on February 15 signed into law the Consolidated Appropriations Act, 2019, which funds several federal agencies and programs through the close of this fiscal year on September 30, including programs crucial to the U.S.-flag fleet and U.S. Merchant Marine.
The appropriations act provides full funding for the Maritime Security Program fleet - $300 million for the fiscal year. The Maritime Security Program (MSP) supports a fleet of 60 militarily-useful U.S.-flagged ships, which are crewed by U.S. merchant mariners and operate in international commercial trades. The ships and their corresponding privately-owned intermodal cargo systems and networks are available to the Department of Defense for military sealift operations and in national security emergencies. The cost of the MSP amounts to a small fraction of the projected $65 billion it would cost the government to replicate this sealift capacity and the intermodal infrastructure provided to the DOD by private-sector MSP participants.
The appropriations act also provides funding for U.S. food-aid programs through the current fiscal year. Food for Peace Title II - the primary source of food-aid cargoes for U.S.-flagged vessels - is now funded at $1.5 billion. In appropriations legislation enacted last March, the program had been funded at $1.6 billion for the previous fiscal year.
Under U.S. cargo preference requirements, at least 50 percent of U.S. government impelled food-aid shipments must be carried by U.S.-flagged vessels. These cargoes help keep U.S.-flagged commercial vessels in service and U.S. merchant mariners, who are needed to man surge and reserve military sealift vessels in times of war and crisis, employed and current on their skills and certifications.
The appropriations act provides the National Security Multi-Mission Vessel Program with $300 million, covering construction, planning, administration and design of maritime academy training ships, which could also be used in defense sealift and humanitarian crisis missions domestically and abroad.
The act also provides $3 million for administrative expenses related to the Maritime Administration's Title XI shipbuilding loan guarantee program, which eases access to commercial credit for the construction of merchant vessels in U.S. shipyards.
Ready Reserve Force
Separately from the Consolidated Appropriations Act, 2019, the National Defense Reserve Fleet, including the Ready Reserve Force, has been funded for the current fiscal year by legislation enacted September 28, 2018, which provides appropriations for the Departments of Defense, Labor, Health and Human Services, and Education.
That legislation provides approximately $310.8 million for the maintenance, administration and activities of the National Defense Reserve Fleet (NDRF) for fiscal year 2019. During the previous fiscal year, the NDRF appropriation was $289.3 million.
Consolidated Appropriations Act funds key maritime programs for fiscal year 2019
President Trump on February 15 signed into law the Consolidated Appropriations Act, 2019, which funds several federal agencies and programs through the close of this fiscal year on September 30, including programs crucial to the U.S.-flag fleet and U.S. Merchant Marine.
The appropriations act provides full funding for the Maritime Security Program fleet - $300 million for the fiscal year. The Maritime Security Program (MSP) supports a fleet of 60 militarily-useful U.S.-flagged ships, which are crewed by U.S. merchant mariners and operate in international commercial trades. The ships and their corresponding privately-owned intermodal cargo systems and networks are available to the Department of Defense for military sealift operations and in national security emergencies. The cost of the MSP amounts to a small fraction of the projected $65 billion it would cost the government to replicate this sealift capacity and the intermodal infrastructure provided to the DOD by private-sector MSP participants.
The appropriations act also provides funding for U.S. food-aid programs through the current fiscal year. Food for Peace Title II - the primary source of food-aid cargoes for U.S.-flagged vessels - is now funded at $1.5 billion. In appropriations legislation enacted last March, the program had been funded at $1.6 billion for the previous fiscal year.
Under U.S. cargo preference requirements, at least 50 percent of U.S. government impelled food-aid shipments must be carried by U.S.-flagged vessels. These cargoes help keep U.S.-flagged commercial vessels in service and U.S. merchant mariners, who are needed to man surge and reserve military sealift vessels in times of war and crisis, employed and current on their skills and certifications.
The appropriations act provides the National Security Multi-Mission Vessel Program with $300 million, covering construction, planning, administration and design of maritime academy training ships, which could also be used in defense sealift and humanitarian crisis missions domestically and abroad.
The act also provides $3 million for administrative expenses related to the Maritime Administration's Title XI shipbuilding loan guarantee program, which eases access to commercial credit for the construction of merchant vessels in U.S. shipyards.
Ready Reserve Force
Separately from the Consolidated Appropriations Act, 2019, the National Defense Reserve Fleet, including the Ready Reserve Force, has been funded for the current fiscal year by legislation enacted September 28, 2018, which provides appropriations for the Departments of Defense, Labor, Health and Human Services, and Education.
That legislation provides approximately $310.8 million for the maintenance, administration and activities of the National Defense Reserve Fleet (NDRF) for fiscal year 2019. During the previous fiscal year, the NDRF appropriation was $289.3 million.