Ensuring Naval Readiness Act

The Ensuring Naval Readiness Act (S 406) modifies a rule allowing the U.S. Navy to build vessels or major components at foreign shipyards under specific conditions. It permits construction in shipyards located in NATO countries or U.S. mutual defense treaty partners in the Indo-Pacific, but only if the foreign cost is lower than domestic construction. The bill also requires the Secretary of the Navy to certify to Congress that the foreign shipyard is not owned or operated by a Chinese company or a multinational company based in China before construction begins. This directly affects Navy procurement decisions and requires new congressional oversight for foreign shipyard contracts.