The Trump administration is reportedly considering an extension of a temporary waiver to the Jones Act, a century-old shipping law, in an effort to keep energy prices down. The waiver, first implemented in March, allows foreign-flagged vessels to transport cargo between U.S. ports, a restriction normally reserved for U.S.-built, U.S.-owned, and U.S.-crewed ships.
Energy Secretary Chris Wright indicated that a temporary extension of the Jones Act waivers is "quite likely to happen," stating that these suspensions have been "quite helpful for moving energy around our country." The current waiver is set to expire on August 16. If extended, it would mark the longest suspension of the Jones Act in its history. The waiver was initially issued for 60 days and then extended for an additional 90 days.
The Jones Act, part of the Merchant Marine Act of 1920, was enacted to strengthen the U.S. shipping industry. However, its temporary suspension has faced criticism from American maritime companies. They argue that the waiver weakens the domestic shipping industry and offers negligible reductions in fuel prices for consumers.
Since the waiver's initial implementation, hundreds of commodities, including crude oil, refined petroleum products, natural gas, coal, ammonia, and fertilizers, have been eligible for transport by foreign vessels. According to government data, 196 voyages have been conducted under the waiver, increasing the availability of tankers to move critical fuel supplies. Wright has stated that this has helped keep energy prices in California and on the East Coast lower than they otherwise would have been.
Despite potential extensions, the administration is reportedly exploring modifications to the waiver. Discussions have occurred with industry representatives and lawmakers about potentially narrowing its scope to be more targeted and favorable to the domestic shipping industry. Critics, including the Maritime Trades Department, which represents U.S. and Canadian maritime workers, contend that the waiver undermines American vessel operators, mariners, and shipyards. They argue that an influx of foreign vessels could lead to losses for U.S. shipyards and negatively impact the broader economy.
Concerns have also been raised about the waiver's minimal impact on consumer savings. William Doyle, a former Federal Maritime Commission member, wrote in July that "consumers have seen little measurable relief at the pump" despite over 130 foreign voyages conducted under the waiver. Additionally, some lawmakers have voiced concerns about the waiver's potential national security implications, with a group of House Republicans calling it a "loophole exploited by adversarial countries to erode America’s maritime dominance."
The Trump administration has pursued other measures to lower energy prices, including authorizing the release of 172 million barrels of crude oil from the nation's strategic reserve and temporarily easing sanctions on oil supplies from Russia and Iran. President Trump has publicly urged oil companies to lower retail prices, stating they "ought to give some of that back to the public."