Posted:
December 29, 2009
President Obama has approved an omnibus appropriations bill for fiscal year 2010, combining appropriations bills for a number of federal departments, including the Department of Transportation. The bill contains full funding for the Maritime Security Program and $5 million for new Title XI shipbuilding loan guarantees.
The legislation appropriates $174 million for the Maritime Security Program, the total requested by the Maritime Administration. Designed to serve the national security needs of the nation, the MSP maintains military access to commercial tonnage and allows the military to move equipment and goods quickly and efficiently at minimal cost. All 60 MSP vessels are U.S.-flagged and manned by U.S. citizens. AMO represents all licensed officers working aboard 15 ships in the MSP fleet.
The Title XI shipbuilding loan guarantee program received $5 million in new funding and $4 million for the administration of loan guarantees. Created by Congress to encourage construction of merchant ships in the U.S., Title XI is not a subsidy program. Instead, the Maritime Administration can guarantee private sector financing for ship construction projects in U.S. shipyards at up to 87.5 percent of a given loan’s value. The program fosters new construction of Jones Act qualified vessels and eases access to commercial credit for U.S. ship owners that qualify for Title XI loan guarantees.
President approves full funding for MSP through fiscal year 2010
President Obama has approved an omnibus appropriations bill for fiscal year 2010, combining appropriations bills for a number of federal departments, including the Department of Transportation. The bill contains full funding for the Maritime Security Program and $5 million for new Title XI shipbuilding loan guarantees.
The legislation appropriates $174 million for the Maritime Security Program, the total requested by the Maritime Administration. Designed to serve the national security needs of the nation, the MSP maintains military access to commercial tonnage and allows the military to move equipment and goods quickly and efficiently at minimal cost. All 60 MSP vessels are U.S.-flagged and manned by U.S. citizens. AMO represents all licensed officers working aboard 15 ships in the MSP fleet.
The Title XI shipbuilding loan guarantee program received $5 million in new funding and $4 million for the administration of loan guarantees. Created by Congress to encourage construction of merchant ships in the U.S., Title XI is not a subsidy program. Instead, the Maritime Administration can guarantee private sector financing for ship construction projects in U.S. shipyards at up to 87.5 percent of a given loan’s value. The program fosters new construction of Jones Act qualified vessels and eases access to commercial credit for U.S. ship owners that qualify for Title XI loan guarantees.