D.C. Court: The Jones Act Advances U.S. Shipbuilding, Employment, and National Security Interests
- law-tlj
- Apr 13
- 20 min read
Chandler D. Thornton
The author is a J.D. candidate at Tulane University Law School, where he is pursuing a certificate of concentration in maritime law and is a member of the Tulane Maritime Law Journal. All views expressed are the author’s alone.
I. What is the Jones Act?
The Jones Act has been in the news recently. Section 27 of the Merchant Marine Act of 1920, commonly known as the Jones Act, is the primary law governing the U.S. coastwise trade or maritime cabotage.[1] Cabotage laws regulate “the transport of goods or passengers from one port or place to another in the same country.”[2] The law is named after the 1920 Act’s original sponsor, U.S. Senator Wesley L. Jones of Washington State.[3]
However, similar laws have existed for centuries. While there is no exact consensus on when cabotage laws originated, some legal scholars point to an English law enacted in 1381 during the reign of Richard II as one of the earliest recorded examples.[4] Today, cabotage laws are far from unique to the U.S., with 105 nations around the world having a form of such laws.[5]
Moreover, cabotage laws are also not unique to waterborne transportation. For example, a foreign aircraft cannot transport passengers or goods between U.S. airports, such as from New York (JFK) to Los Angeles (LAX).[6] Similarly, a foreign motor carrier is also generally prohibited from point-to-point transportation within the U.S.[7] In other words, the Jones Act is merely America’s maritime version of a common domestic transportation law among nations worldwide.
Under the Jones Act, vessels possessing a validly issued “coastwise endorsement” are eligible to transport merchandise between two U.S. coastwise points.[8] Today, the Jones Act is primarily administered by three federal agencies: U.S. Customs and Border Protection (CBP), the U.S. Maritime Administration (MARAD), and the U.S. Coast Guard (USCG). In practice, these agencies often determine the scope of the Jones Act.[9]
A coastwise transportation of merchandise occurs “when merchandise laden at a point embraced within the coastwise laws . . . is unladen at another coastwise point, regardless of the origin or ultimate destination of the merchandise.”[10] Merchandise includes “goods, wares, and chattels of every description . . . [including] merchandise the importation of which is prohibited.”[11]
To be eligible for a coastwise endorsement, a vessel must sail under the U.S. flag,[12] be built in the U.S.,[13] and be owned and controlled by U.S. citizens.[14] In general, U.S.-flagged vessels must also meet U.S. crewing requirements. For a vessel to be considered U.S.-crewed, the vessel must satisfy the citizenship standards required of all U.S.-documented vessels.[15]
The Jones Act terminology is also used to describe a broader collection of coastwise laws, some of which were enacted before the 1920 Act.[16] In fact, the Jones Act traces its roots to America’s earliest days as a nation. Among the first-ever U.S. laws were those that set rates of customs duties on various goods, imposed tonnage-based fees on ships entering port, established vessel registration requirements, and regulated the mechanics of collecting impost and tonnage fees.[17]
In 1789, the third law ever enacted by Congress even stated that “every ship or vessel employed in the transportation of any of the produce or manufactures of the [U.S.], coastwise within the said States, except such ship or vessel be built within the said States, and belong to a citizen or citizens thereof,” was required to “on each entry, pay fifty cents per ton.” Unlike foreign-built and foreign-owned vessels, U.S.-built and U.S.-owned vessels were subject to paying “six cents per ton” at most “once in any year.”[18]
While the law has adapted in various ways, such as shifting from a tax on goods transported by foreign vessels to a general ban on coastwise transportation by foreign vessels,[19] the fundamental principles remain the same today.[20]
Fast forward to March 17, 2026. The Trump Administration issued a sixty-day waiver of the Jones Act, which is set to expire on May 17, 2026.[21] The decision followed the commencement of Operation Epic Fury, a coordinated military operation aimed at dismantling the Iranian regime’s security apparatus, which resulted in the death of the Iranian Supreme Leader Ayatollah Ali Khamenei.[22] Among other ancillary effects, Operation Epic Fury led to disruptions in the Strait of Hormuz[23] and volatility across global energy markets, a situation that remains ongoing.[24]
In light of the March 17 waiver, the Jones Act is now in the spotlight. This presents an opportunity to discuss the legal framework surrounding administrative waivers of the coastwise laws. Still, the March 17 waiver is not the only Jones Act story that made headlines so far this year.
On January 20, 2026, the U.S. District Court for the District of Columbia resoundingly dismissed several constitutional challenges made against the Jones Act. In his forty-six-page opinion, Chief Judge James E. Boasberg succinctly stated: “Congress enacted the legislation to advance American shipbuilding, employment, and national security, not to discriminate against particular ports.”[25] This blog post analyzes both of these recent legal developments.
II. Administrative Waivers of the Jones Act
While Congress has legislatively exempted certain geographic locations and vessel types from the Jones Act’s requirements, this blog post addresses administrative waivers rather than legislative exemptions.[26] The March 17 waiver originally covered 659 cargo types,[27] which was later expanded to 663 types.[28] According to the White House, the waiver was issued “to mitigate the short-term disruptions to the oil market” and “strengthen our critical supply chains.”[29] The waiver remains in effect at the time of this blog post’s publication.
However, since 2021, MARAD has been statutorily required to publish certain information for every voyage of every vessel operating under such a waiver. Within ten days of the conclusion of such a voyage, owners and operators of non-coastwise-qualified vessels must report the following information to MARAD: the vessel’s name and flag, the name of the owner and operator, the voyage dates, the ports of call, a description of the cargo carried, and an explanation of why the waiver was in the interest of national defense. MARAD is then required to publish this information on its website within forty-eight hours of receipt.[30]
As of the date of this blog post, MARAD has published the statutorily required information for five vessels that have completed coastwise voyages under the March 17 waiver. This includes the Liberian-flagged bulk carrier JPS Elli, the Danish-flagged tanker Torm Agnete, the Singaporean-flagged LPG tanker Chrysopigi Lady, the UK-flagged tanker Stena Imperator, and the Marshall Islands-flagged tanker Cabo Deseado.[31]
Administrative waivers of the Jones Act are not necessarily a modern invention. In the days immediately following the attack on Pearl Harbor on December 7, 1941, President Franklin D. Roosevelt signed an executive order establishing two ways in which the Secretary of Commerce could “waive compliance with the navigation and vessel inspection laws.” First, the waiver could be issued “upon the request of the Secretary of the Navy or the Secretary of War to the extent deemed necessary in the conduct of the war by the officer making the request.” Second, the Secretary of Commerce could waive such laws “to such extent and in such manner and upon such terms as he may prescribe, either upon his own initiative or upon the written recommendation of the head of any other Government agency that such action is necessary in the conduct of the war.”[32]
In the early weeks after the U.S. entered World War II, President Roosevelt issued another executive order that redistributed certain maritime-related functions from the Bureau of Marine Inspection and Navigation, then housed within the Department of Commerce, to other federal agencies. Functions related to vessel documentation and finance were transferred to the Bureau of Customs, then housed within the Department of the Treasury. Functions related to vessel safety, inspection, and merchant seamen were transferred to the U.S. Coast Guard, then under the Department of the Navy in wartime. The Secretary of Commerce’s prior authority to waive the navigation and inspection laws was transferred to the Secretary of the Treasury and the Secretary of the Navy, respectively.[33]
Later that month in March 1942, Congress passed the Second War Powers Act, which statutorily granted each department or agency head “responsible for the administration of the navigation and vessel inspection laws . . . to waive compliance with such laws upon the request of the Secretary of the Navy or the Secretary of War to the extent deemed necessary in the conduct of the war by the officer making the request.”[34] While the law was amended in certain ways after World War II, these wartime developments established the early framework for the modern-day Jones Act administrative waiver regime.
Today, administrative waivers may be issued under two authorities: section 501(a) or section 501(b) of Title 46, Subtitle I, Chapter 5 of the U.S. Code.[35]
Under section 501(a), the authority relied upon for the March 17, 2026, administrative waiver, the Secretary of Homeland Security must grant a Jones Act waiver request from the Secretary of War when the waiver is required “to address an immediate adverse effect on military operations.” Notably, section 501(a) waivers do not require a determination as to whether U.S.-flagged vessels are available.[36] However, under section 501(a), the Secretary of War must provide to Congress “a written explanation of the circumstances requiring such a waiver . . . including a confirmation that there are insufficient qualified vessels to meet the needs of national defense without such a waiver.”[37]
Under section 501(b), the President must determine that a waiver “is necessary in the interest of national defense.”[38] The Maritime Administrator must then determine “the non-availability of qualified [U.S.] flag capacity to meet national defense requirements,”[39] and must publish such determinations on its website, a requirement added in 2012.[40] This requires “identify[ing] any actions that could be taken to enable qualified [U.S.] flag capacity to meet national defense requirements prior to the issuance of a waiver.”[41]
MARAD is prohibited from “assess[ing] the non-availability of qualified [U.S.] flag capacity to meet national defense requirements retrospectively after the date on which a waiver is requested.”[42] CBP is required to publish the waiver notice on its website for at least forty-eight hours before the waiver takes effect, in theory allowing Jones Act-qualified vessels an opportunity to offer capacity.[43] Under section 501(b), waivers are on a “vessel specific basis”[44] and are limited to “a period of not more than [ten] days.”[45]
Jones Act administrative waivers have been issued with some degree of regularity in recent years. In 2005, short-term waivers were issued for the transportation of “petroleum and refined petroleum products” in the aftermath of Hurricane Katrina[46] and later Hurricane Rita.[47] In 2011, following the release of thirty million barrels of oil from the Strategic Petroleum Reserve tied to the conflict in Libya, the Obama Administration issued over forty Jones Act waivers to transport crude.[48] In 2012, a waiver was issued in response to Hurricane Sandy.[49]
In 2017, when contemplating a waiver following Hurricane Maria, which impacted the island of Puerto Rico, President Trump expressed reluctance to waive the Jones Act.[50] However, waivers were issued during the historic 2017 Atlantic hurricane season.[51] In 2021, waivers were issued following the Colonial Pipeline cyberattack.[52]
Most recently, in the context of Hurricane Fiona in 2022, a request for MARAD to retroactively conduct a U.S. vessel availability survey exposed the potential to circumvent the spirit of the waiver framework. In that instance, before a waiver request had been submitted, a foreign-flagged tanker had already departed Texas City, Texas, carrying approximately 300,000 barrels of diesel, and was already underway to Guayanilla, Puerto Rico. The Maritime Administrator called this a “novel and problematic” waiver request.[53]
Previously, under section 501(b), the Secretary of Homeland Security could determine the necessity of a waiver without the President’s determination, but this was amended through the enactment of the 2023 NDAA.[54]
III. An Unsuccessful Constitutional Challenge
Especially in light of the March 17, 2026, waiver issued under section 501(a), a decision by the U.S. District Court for the District of Columbia, issued on January 20, 2026, underscores the Jones Act’s significance to U.S. interests.[55]
On February 25, 2025, Kōloa Rum Company, a small-batch rum distillery located on the Hawaiian island of Kauai, filed a complaint against the Secretary of Homeland Security and the Acting CBP Commissioner. The complaint alleged that the Jones Act violates the Port Preference Clause of the Constitution because it “unlawfully discriminates against the ports of Hawaii.”[56]
The next month, the rum company filed an amended complaint, asserting a second cause of action that the Jones Act “deprives Kōloa Rum Company of its right to earn a living without due process of law.”[57] The Port Preference Clause argument was seemingly inspired by a Yale Law Journal article[58] cited in the rum company’s complaint and amended complaint.[59]
The court granted motions to intervene[60] by defendant-intervenors Matson Navigation Company, Inc.,[61] “the leading Jones Act carrier for coastwise trade with Hawaii,”[62] along with the American Maritime Partnership (AMP) and the Maritime Trades Department of the AFL-CIO (MTD),[63] “two national associations representing hundreds of companies and unions comprising the American maritime industry.”[64] The Government moved to dismiss the lawsuit, citing Supreme Court and D.C. Circuit precedent to support its position that “the Jones Act comes nowhere close to violating either Constitutional provision” alleged by the company.[65]




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