A bill to authorize appropriations for the maritime construction differential subsidy for fiscal year 1986, to promote a strong United States merchant marine, and for other purposes.

Authorizes appropriations to the Department of Transportation for FY 1986 for the maritime construction-differential subsidy.

Amends the Merchant Marine Act, 1936 to raise the maximum construction differential subsidy payment to 60 percent of the construction contract price (currently 50 percent).

Increases the limitation on outstanding loan obligations for vessel construction, reconstruction, or reconditioning.