This bill establishes an exception to the existing prohibition on constructing United States naval vessels in foreign shipyards. It amends title 10, United States Code, to permit such construction if the foreign shipyard is located in a North Atlantic Treaty Organization (NATO) member country or an Indo-Pacific Region country that has a mutual defense treaty with the United States. A key condition for this exception is that the cost of construction must be less than if the work were performed in a domestic shipyard. Additionally, before any construction of a naval vessel or a major component can begin at a foreign shipyard, the Secretary of the Navy is required to submit a certification to Congress . This certification must confirm that the foreign shipyard is not owned or operated by a Chinese company or a multinational company domiciled in the People's Republic of China, addressing national security concerns.