S.406

Ensuring Naval Readiness Act allows exceptions to naval vessel construction in foreign shipyards under certain conditions.

The Ensuring Naval Readiness Act modifies the prohibition on constructing naval vessels in foreign shipyards. It allows exceptions if the shipyard is in a NATO member country or an Indo-Pacific country with a mutual defense treaty with the U.S., and if the cost is lower than domestic construction. Additionally, the Secretary of the Navy must certify that the shipyard is not owned or operated by a Chinese company or a multinational company based in China before construction can begin.