House Republicans urge end to Jones Act waiver on August 16

More than 50 House Republicans sent a letter this week asking the administration to let a Jones Act waiver expire on August 16. The waiver, in place since March, has allowed foreign-flagged ships to carry fuel between U.S. ports.

The waiver was issued after supply disruptions linked to the war in Iran closed the Strait of Hormuz and halted roughly 20 million barrels of crude oil per day. Officials used the waiver to help lower fuel and fertilizer prices that rose during the spring.

Republican signatories said the conditions that justified the waiver have ended following a June memorandum of understanding between the United States and Iran that established a 60-day ceasefire.

The letter stated that the Jones Act, which requires goods shipped between U.S. ports to move on American-built, American-flagged vessels, protects hundreds of thousands of maritime jobs and supports the transport of more than 760 million tons of domestic cargo each year.

Signatories argued that foreign vessels have continued operating under the waiver even when U.S.-flagged ships were available, creating concern about effects on American jobs and investment. House Speaker Mike Johnson (R-LA) and House Majority Leader Steve Scalise (R-LA) were among those who signed the letter made public on Wednesday.

Rep. Randy Weber (R-TX) said during an interview that lawmakers want American vessels and American sailors to handle domestic shipping. He added that some members believe the waiver has not reduced price increases as much as hoped. As of June 25, 136 voyages involving 119 unique vessels had used the waiver, according to a Cato Institute tracker.