NAWE Advocates for Capital Construction Fund Expansion in NDAA to Modernize Ports

What's Happening?

The National Association of Waterfront Employers (NAWE) is urging Congress to incorporate the 'Strengthening American Maritime Dominance Act' (H.R. 3842) into the Fiscal Year 2026 National Defense Authorization Act (NDAA). This legislation aims to expand the Capital Construction Fund (CCF), enabling U.S. marine terminal operators to upgrade critical cargo handling equipment. The initiative is designed to modernize port infrastructure without imposing additional costs on taxpayers. NAWE, which operates at 16 of the 17 U.S. defense strategic seaports, emphasizes the importance of this measure for enhancing the nation's strategic sealift capabilities. The proposal also seeks to transition away from Chinese-manufactured cargo handling equipment, aligning with national security interests.

Why It's Important?

The proposed expansion of the Capital Construction Fund is significant for several reasons. It promises to modernize U.S. port infrastructure, which is crucial for maintaining a robust supply chain and supporting military operations. By allowing marine terminal operators to reinvest in safer and more efficient equipment, the initiative could boost domestic manufacturing and enhance national security. The legislation's 'Buy America' provisions ensure that investments support U.S. jobs and industry, while the ban on Chinese equipment purchases addresses security concerns. This move is also seen as a preventive measure against future supply chain disruptions, similar to those experienced during the COVID-19 pandemic.

What's Next?

If the legislation is included in the NDAA, private marine terminal operators will be able to defer taxes and reinvest those funds into new or replacement cargo handling equipment. This could lead to significant economic growth, job creation, and more resilient trade operations. NAWE has already communicated its support for the legislation to the House Transportation & Infrastructure Committee, indicating a strong push for its adoption. The outcome will depend on congressional deliberations and the broader political climate regarding infrastructure and national security priorities.