Bill Summary
The "American Cargo for American Ships Act" is a piece of legislation that amends Title 46 of the United States Code. Its primary objective is to ensure that all cargoes procured, furnished, or financed by the Department of Transportation (DOT) are transported using privately-owned commercial vessels registered in the United States.
The Act establishes that, with certain exceptions, when the DOT engages in acquiring or financing transportation services, it must guarantee that 100% of the gross tonnage of equipment, materials, or commodities transported by ocean vessels comes from U.S.-flagged commercial vessels. This requirement is contingent on the availability of such vessels at fair and reasonable rates, promoting domestic shipping and supporting the U.S. maritime industry.
Overall, the legislation aims to bolster American shipping capabilities and ensure that federal funds contribute to the domestic maritime economy.
Possible Impacts
The "American Cargo for American Ships Act" could affect people in several ways. Here are three examples:
1. **Economic Impact on U.S. Shipping Industry**: The legislation mandates that cargoes procured or financed by the Department of Transportation be transported on U.S.-owned commercial vessels. This could lead to increased business for American shipping companies, potentially creating jobs and boosting the economy in maritime sectors. Workers in shipping, shipbuilding, and related industries may benefit from increased demand for U.S.-flagged vessels.
2. **Higher Costs for Government Contracts**: If American shipping companies are unable to provide transportation services at competitive rates compared to foreign vessels, the legislation might lead to higher costs for government contracts. This could affect taxpayers as the government may need to allocate more funds for shipping costs, which could, in turn, reduce the budget available for other public services or infrastructure projects.
3. **Impact on Trade and Supply Chains**: The requirement for using U.S. commercial vessels could disrupt existing supply chains that rely on international shipping routes and foreign vessels. Businesses that import or export goods may face delays and increased logistical challenges, potentially leading to higher prices for consumers. This could result in broader economic implications, particularly for industries heavily reliant on global trade.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2035 Referred in Senate (RFS)]
<DOC>
119th CONGRESS
1st Session
H. R. 2035
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 10, 2025
Received; read twice and referred to the Committee on Commerce,
Science, and Transportation
_______________________________________________________________________
AN ACT
To amend title 46, United States Code, to direct the Secretary of
Transportation to ensure that all cargoes procured, furnished, or
financed by the Department of Transportation are transported on
privately-owned commercial vessels of the United States, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``American Cargo for American Ships
Act''.
SEC. 2. CARGOES PROCURED, FURNISHED, OR FINANCED BY UNITED STATES
GOVERNMENT.
Section 55305 of title 46, United States Code, is amended--
(1) in subsection (a) by striking ``When the United States
Government'' and inserting ``Except as provided in subsection
(c), when the United States Government'';
(2) by redesignating subsections (c) through (f) as
subsections (d) through (g), respectively; and
(3) by inserting after subsection (b) the following:
``(c) Exception.--When the Department of Transportation procures,
contracts for, or otherwise obtains for its own account, or provides
financing in any way with Federal funds or advances funds or credits,
for the furnishing or obtaining of the equipment, materials, or
commodities, the Secretary of Transportation or recipient of such
financing shall take steps necessary and practicable to ensure that 100
percent of the gross tonnage of the equipment, materials, or
commodities (computed separately for dry bulk carriers, dry cargo
liners, and tankers) which may be transported on ocean vessels is
transported on privately-owned commercial vessels of the United States,
as provided under subsection (b), to the extent those vessels are
available at fair and reasonable rates for commercial vessels of the
United States, in a manner that will ensure a fair and reasonable
participation of commercial vessels of the United States in those
cargoes by geographic areas.''.
Passed the House of Representatives June 9, 2025.
Attest:
KEVIN F. MCCUMBER,
Clerk.