Sec. 414. Financing the transportation of agricultural products and other cargo
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Subchapter II of chapter 553 of title 46, United States Code, is amended by inserting after section 55315 the following: The Secretary of Transportation shall finance any reasonable increased ocean freight costs, as assessed by the Maritime Administrator, incurred in any fiscal year by a covered agency that result from the application of section 55305 of this title, including the application of such section to the activities specified in section 55314(b) of this title. The Secretary of Transportation shall reimburse a covered agency for the amount by which, in any fiscal year— the total cost of ocean freight and ocean freight differential for which obligations are incurred by the covered agency under section 55305 of this title, including pursuant to the application of such section to the activities specified in section 55314(b) of this title; exceeds 20 percent of the total value of the cargo, including agricultural products, transported under such section 55305, including pursuant to the application of such section to such activities, and the cost of the ocean freight and ocean freight differential, as assessed by the Maritime Administrator, on which obligations are incurred by the covered agency during that fiscal year.
For purposes of this subsection, agricultural products shipped from the inventory of the Corporation shall be valued as provided in section 412(d) of the Food for Peace Act ( 7 U.S.C. 1736f(d) ). Not later than 180 days after the date of enactment of the SHIPS for America Act of 2025 , the Secretary of Transportation shall enter into an interagency agreement with the head of each agency entitled to a reimbursement under subsection (b)(1). Each interagency agreement shall include— an explanation of the process the agency shall follow to receive a reimbursement from the Secretary of Transportation under this section; a standard methodology for calculating the reimbursement an agency is entitled to under this section; and deadlines— by which an agency shall submit a reimbursement request in order to receive reimbursement; and by which the Secretary of Transportation shall approve a properly filed reimbursement request, which date shall not be more than 90 days after the date on which the reimbursement request is submitted.
The Secretary of Transportation shall notify the appropriate committees of Congress— when each interagency agreement required under this subsection is finalized; and any time that an interagency agreement required under this subsection is updated. In this section, the term agricultural product has the meaning given the term in section 55314 of title 46, United States Code. For each fiscal year, the Inspector General of the Department of Transportation shall conduct an audit of all reimbursements made by the Secretary of Transportation under this section during such fiscal year to ensure all such reimbursements were made in accordance with the requirements of this section.
Each agency entitled to reimbursement under subsection
(b)shall— provide to the Inspector General any documents or other information requested by the Inspector General in order to complete the audit, including the information described in subparagraph (B); and require any party that enters into a contract with such agency related to the implementation of section 55305 of this title, or any activities specified in section 55314(b) of this title, to provide the agency, as a condition for entering into such contract, with information relevant for the audit as determined by the Inspector General. Not later than 90 days after the end of each fiscal year, the Inspector General shall submit a report detailing the findings of such audit with respect to such fiscal year to the appropriate committees of Congress and make the report publicly available. For each fiscal year, there is authorized to be appropriated, out of the Maritime Security Trust Fund established under section 50301(b) of this title, an amount sufficient to reimburse the Secretary of Transportation for the costs incurred under this section, including administrative expenses. For purposes of this section, the term covered agency means any agency that administers an activity specified in section 55314(b) of this title. . The table of sections for subchapter II of chapter 553 of title 46, United States Code, is amended by inserting after the item relating to section 55315 the following: 55316. Financing the transportation of agricultural products and other cargo. .
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Sec. 414
Financing the transportation of agricultural products and other cargo
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