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HR 7350

Fishing Vessel Financing Improvement Act of 2026

119th Congress Introduced by Rick Larsen

Expands MARAD direct loans and guarantees to include used fishing vessels and broader fishing-related financing, with higher guarantees and new safeguards aligned to fisheries mana

Introduced in House
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WeVote Research Nonpartisan
Bill Summary · HR 7350

Overview

  • Bill: HR 7350 (Fishing Vessel Financing Improvement Act of 2026)
  • Session: 119th Congress
  • Purpose: Amend title 46, United States Code to modify and expand direct loan and loan-guarantee authorities via the Department of Transportation and the Maritime Administration (MARAD) for financing fishing vessels, with related changes to eligibility, funding, and safeguards.
  • Introduced: February 4, 2026 (Referred to the House Committee on Armed Services)
  • Principal sponsor: Rep. Begich; co-sponsor: Rep. Larsen (WA)

Main purpose and intent

  • To broaden and clarify MARAD’s direct loan and loan-guarantee programs for financing fishing vessels and related facilities.
  • To include fishing and seafood-related trade more explicitly in eligible uses and to adjust loan guarantees and financing terms in light of industry needs.
  • To align financing provisions with fisheries management goals and economic considerations within the Magnuson-Stevens framework.

Key provisions and changes

  • Definitions

    • Expands and reorganizes definitions in 46 U.S.C. §53701, including explicitly defining “fishing” by cross-reference to the Magnuson-Stevens Act.
    • Clarifies that the term “fishing vessels” includes vessels used in fishing activities.

  • Direct loans

    • MARAD’s direct loan authority (46 U.S.C. §53702) remains, but with adjusted labeling and clarified language to include “used” fishing vessels in eligible contexts.
    • Recasts some financing purpose language to refer to “financing the purchase” rather than broader or differently worded purposes.

  • Funding limits and obligations

    • Amends §53704(a) to broaden phrasing around obligations related to fishing facilities and used fishing vessels.
    • Adjusts eligibility and use of funds accordingly, aligning with new definitions.

  • Eligible purposes and obligor/obligor-related findings

    • §53706(a)(1)(A) revised to allow additional categories, including a new eligibility category for the fishing industry or seafood-related trade.
    • §53707(c) and §53708 amended to include Administrator involvement and to incorporate economic-soundness safeguards and internal consistency with fisheries resources management.

  • Economic soundness safeguards

    • Adds a new provision (§53708(f)) prohibiting guarantees or commitments if deemed inconsistent with wise use of fisheries resources and Magnuson-Stevens Act objectives (conservation, management, protection).

  • Amounts and guarantees

    • §53709(a)(3) revised to distinguish funding for used vessels and to increase guarantees for certain vessels up to 87.5% of actual or depreciated cost when the Administrator guarantees an obligation.
    • Adjusts the scope and limits of guarantees accordingly, with Administrator involvement extended to the guarantee process.

  • Vessel replacement and construction financing

    • §53734 amendments expand applicability to fishing or seafood-related trade (in addition to coastwise, intercoastal, and foreign trade).
    • Amends language to cover construction, refinancing, and reconstruction of vessels.
    • Adds a new applicability clause: guarantees for construction or refinancing financed with funds appropriated on or after the National Defense Authorization Act for Fiscal Year 2026 (NDAA 2026) enactment date.

  • Eligibility window

    • Creates a two-year eligibility window post-enactment for certain larger fishing vessels (greater than 79 feet overall, built and documented after Jan 1, 2021) to be eligible for Administrator-guaranteed obligations, even if not fully meeting prior reconstruction/repair requirements.

  • Savings clause

    • Retains authority for the Secretary of Commerce to provide direct loan obligations under existing authorities (American Fisheries Act §211(e)) notwithstanding these changes.

Who is affected

  • Fishing vessel owners and operators seeking financing or guarantees for purchase, construction, refinancing, or reconstruction.
  • Fishery-related facilities developers and entities involved in the fishing and seafood sector.
  • MARAD and the Department of Transportation, which administer direct loan and guarantee programs.
  • The Secretary of Commerce remains involved through the savings clause, ensuring alignment with broader federal fisheries policy.

Procedural and timeline aspects

  • Procedural history: Introduced February 4, 2026; referred to the House Committee on Armed Services.
  • No floor passage or Senate action detailed in the provided text.
  • Notable timelines: Eligibility expansion includes a two-year window post-enactment; applicability tied to NDAA 2026 funding dates for certain guarantees.

Potential impacts

  • Increased access to financing for fishing vessels and related facilities, including higher-guaranteed loan percentages (up to 87.5% for Administrator-guaranteed vessels).
  • Expanded eligibility to include broader fishing-related activities, potentially broadening the financed fleet and industry investments.
  • Stronger alignment of federal financing with fisheries conservation and sustainable management goals, through explicit economic-soundness safeguards.
  • Administrative changes: MARAD’s direct loan/guarantee program language updated, with new definitions and scope, and explicit involvement of the MARAD Administrator in guaranty decisions.

If you’d like, I can provide a side-by-side comparison with current law (46 U.S.C. titles) to highlight all statutory changes in detail.

Compiled from official sources — confirm details with the bill’s official record.

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