Carbajal Launches Oversight into Foreign Vessel Operators that Benefited from Jones Act Waiver

As we observe the Jones Act's 106th anniversary, U.S. Representative Salud Carbajal (D-CA-24), Top Democrat on the House Coast Guard and Maritime Transportation Subcommittee, sent letters to vessel owners and operators that benefited from the Trump administration's Jones Act waiver, seeking information about their use of the waiver, compliance with U.S. law, and the impacts on American maritime jobs and domestic shipping capacity. The letters are part of Carbajal's ongoing oversight of the Administration's April 23 extension of the waiver.

Since the waiver was issued, Maritime Administration (MARAD) records show that several foreign operators provided either vague justifications for the waiver or, in some cases, identified the national security rationale as 'not applicable.' In his letters, Carbajal outlines how this is not how Congress intended the waiver to be used.

"While this Administration may play fast and loose with the law, your requirements under the law are clear. Even when operating under a Jones Act waiver, every vessel that operates in the domestic trades must comply with all other federal and state statutes," wrote Rep. Carbajal. "As Ranking Member of the Coast Guard and Maritime Transportation subcommittee, I have always been an outspoken supporter of the Jones Act, and this waiver has shown that now is the time to engage in rigorous oversight to protect the American maritime industry."

In addition, Carbajal requests detailed information from each company to ensure the organizations are in compliance with applicable federal and state laws.

"I intend to work with relevant federal and state agencies to ensure that all operators utilizing the waiver have complied with applicable U.S. laws and regulations," concluded Rep. Carbajal. "Accordingly, I request that you provide detailed information regarding your compliance with all applicable federal and state laws for any vessel that has operated, is operating, or intends to operate in domestic commerce pursuant to the current Jones Act waiver. This information will assist Congress in evaluating both compliance with existing law and the broader impacts of the waiver on U.S. maritime interests."

For illustrative purposes, a sample letter is provided here.

Carbajal serves as Ranking Member of the House Coast Guard and Maritime Transportation Subcommittee.

Last month, Carbajal was recognized by the International Propeller Club and received the Frank Courtenay "Salute to Congress" Award for championing legislation to support the American maritime industry.

In addition, as Chairman of the House Coast Guard and Maritime Transportation Subcommittee, Carbajal helped lead congressional efforts to address supply chain disruptions and strengthen oversight of the shipping industry to reduce everyday costs for all Americans. In 2022, Carbajal joined President Joe Biden at the White House for the signing of the bipartisan Ocean Shipping Reform Act into law.

Since FY22, Carbajal has led the bipartisan appropriations letter requesting robust funding for the Small Shipyard Grant Program. The program is designed to support small shipyard projects that make capital and related improvements; or provide training for workers in shipbuilding, ship repair, and associated industries.

Small shipyards are a critical component of U.S. maritime operations and economic security, employing more than 100,000 Americans and contributing tens of billions in gross domestic product.