A Bill to Repeal the Jones Act (Merchant Marine Act of 1920)
Section 1. Short Title This Act may be cited as the “Jones Act Repeal Act of 2024.”
Section 2. Repeal of the Jones Act
(a) Repeal of the Merchant Marine Act of 1920
The Merchant Marine Act of 1920 (46 U.S.C. § 883) is hereby repealed in its entirety. This repeal shall take effect on [Date], and all provisions of the Act and any related laws or regulations shall be null and void as of that date.
(b) Amendment to Other Laws
Any reference to the Merchant Marine Act of 1920 in any other Federal law, regulation, or executive order is hereby amended to reflect the repeal of the Act.
Section 3. Transportation of Goods Between U.S. Ports
(a) Elimination of Restrictions on Foreign Vessels
As of [Date], foreign-flagged vessels shall be permitted to engage in the transportation of goods between U.S. ports without restriction, including but not limited to the transportation of goods between U.S. states, territories, and possessions. The requirement for vessels to be U.S.-flagged, built, owned, or crewed by U.S. citizens or permanent residents shall no longer apply.
(b) Implementation of International Standards
The Secretary of Transportation, in coordination with the Secretary of Homeland Security and other relevant agencies, shall ensure that foreign vessels engaged in transportation between U.S. ports comply with all applicable international maritime safety, environmental, and security standards.
Section 4. National Security and Maritime Readiness
(a) National Security Assessment
The Secretary of Defense, in coordination with the Department of Transportation, shall provide an annual report to Congress assessing the impact of the repeal on national security, including the capacity of the U.S. maritime industry to support national defense and emergency response efforts.
(b) Support for U.S. Maritime Industry
The Secretary of Transportation is authorized to establish programs to promote the continued strength of the U.S. maritime industry, including support for shipbuilding, innovation, and the development of a competitive, efficient, and sustainable maritime workforce.
Section 5. Economic Impact and Study
(a) Study on Economic Impact
The Secretary of Commerce shall conduct a study on the economic impact of the repeal of the Jones Act on U.S. consumers, businesses, and industries, including an analysis of shipping costs, the effect on U.S. territories, and the potential for increased competition. The report shall be submitted to Congress no later than [six months after enactment].
(b) Cost Savings for U.S. Territories
The Secretary of the Treasury, in consultation with the Secretary of Commerce, shall assess the financial impact of the repeal on U.S. territories, particularly Puerto Rico, Alaska, and Hawaii, to determine potential savings in transportation costs, and submit a report to Congress within 180 days of enactment.
Section 6. Transition Provisions
(a) Transition Period for Existing Contracts
All existing contracts that were entered into under the provisions of the Merchant Marine Act of 1920 shall continue in effect until their expiration. However, no new contracts or extensions shall be entered into under the restrictions of the repealed Act.
(b) Regulatory Adjustments
The Secretary of Transportation, in consultation with the Federal Maritime Commission, shall review and revise regulations affected by the repeal of the Jones Act to ensure the smooth transition to an open maritime market. This includes the elimination of any outdated requirements that conflict with the provisions of this Act.
Section 7. Effective Date
This Act shall take effect on [Date], except where otherwise specified.
This draft bill introduces the main provisions necessary to repeal the Jones Act while addressing key aspects like economic impact, national security, and the transition to an open maritime market. Specific dates and procedural details would need to be refined based on legislative requirements and further consultation with relevant government agencies.
The Jones Act, officially known as the Merchant Marine Act of 1920, requires that goods transported between U.S. ports be carried on vessels that are U.S.-flagged, built, owned, and operated by U.S. citizens or permanent residents. Proponents argue that repealing the Jones Act could bring several benefits, particularly in terms of economic efficiency, competition, and cost reduction:
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Lower Shipping Costs
The Jones Act limits competition by restricting foreign vessels from carrying goods between U.S. ports. Foreign vessels typically operate more efficiently, often at a lower cost, than U.S.-flagged vessels. Repealing the law could lower the costs of transporting goods, leading to cheaper goods and services, especially in areas like Alaska, Hawaii, and Puerto Rico, which rely on shipping for imports and exports. -
Increased Competition and Innovation
Without the Jones Act, foreign vessels would be allowed to compete directly with U.S.-flagged ships. This could foster innovation and improve efficiency in the shipping industry, as companies would have to find ways to lower costs and improve service to remain competitive. -
Economic Benefits for U.S. Consumers
Lower shipping costs would likely translate to lower prices for goods, particularly in island states or territories that currently face higher shipping costs due to the restrictions imposed by the Jones Act. For example, Puerto Rico’s cost of living could decrease with more affordable imports, benefiting its economy and consumers. -
Diversion of Resources to More Critical Areas
The U.S. government spends significant resources subsidizing the U.S. maritime industry to comply with the Jones Act. Repealing it could free up government funds for other purposes, including infrastructure projects or other forms of economic assistance. -
Flexibility in Emergency Situations
In times of natural disasters or other emergencies, the Jones Act can limit the ability to quickly bring in foreign vessels to assist with relief efforts. Repealing the law could allow for faster response times in crises, as foreign ships would be able to deliver aid without bureaucratic hurdles. -
Environmental Impact
U.S. shipping fleets under the Jones Act often have older ships, which are less fuel-efficient and more polluting than newer, foreign vessels. Allowing foreign ships would potentially introduce more environmentally friendly and efficient vessels into U.S. waters.