Page 20: of Marine News Magazine (July 2026)

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Feature

Dredging ing their compliance with American ply. Therefore, the U.S. government vancing American Fisheries, Maritime laws and security standards, an alarm- is granting preference to foreign ? ag Strength, and Coastal Economies, for ing number of them gave either vague operators over its own domestic ? eet. the waiver “to be extended again would justi? cations similar to statements like Concerns about the waiver’s impact be another sign to the investment com- “Because of the waiver,” or just stating on American jobs and national secu- munity and to companies like ours and “Not Applicable.” Such responses pro- rity are being raised in hearings on to mariners that the Jones Act is un- vide insuf? cient assurance that foreign Capitol Hill. During the March 18, stable, and investment will ? ee.” [As of operators are meeting the compliance 2026 congressional hearing, Waiving this writing the cease ? re in the Persian and security expectations typically as- the Jones Act to Fix Trump’s Econom- Gulf just came into effect, but the Jones sociated with domestic commerce. In ic Crisis, U.S. Representative Hillary Act waiver remains in place.] addition, maritime tax professionals Scholten (D-MI) put it plainly: “If are increasingly raising concerns that the waiver continues, we will become Environmental Restrictions the waiver is opening the door to what quickly reliant on foreign-? ag ships While the Jones Act waiver relaxes appears to be a tax avoidance structure. for domestic commerce.” At a Senate long-standing protections despite

These foreign ? ag vessel operators are Armed Services Committee hearing questionable bene? ts, other areas of also avoiding the safety and environ- on U.S. Transportation Command, maritime policy remain constrained mental oversight with which the do- Chairman Roger Wicker (R-MS) by regulations built around assump- mestic maritime industry must com- took the argument a step further, tions and scienti? c limitations from warning that if “war breaks out, Chi- decades ago. The issue of dredging nese ships aren’t going to be available windows provides a useful example. to us.” The waiver is putting a direct During the 2026 National Dredg- strain on economic investment. The ing Meeting in Norfolk, Virginia,

Federal Reserve’s May 2026 Beige Book nearly 200 attendees from the U.S. has indicated that “A water transporta- Army Corps of Engineers (USACE), tion company noted having paused private sector dredging companies and domestic shipping investment due to associations discussed a major indus-

Jones Act waivers.” This is signi? cant try issue. That issue focused on how as it appears to be the ? rst time the rigid regulatory dredging windows

Fed’s Beige Book cited the waiver as a place a ? nancial burden on both the causal factor in diminishing economic dredging industry and the American investment. Similar concerns are being taxpayer. Keynote speaker, Deputy raised throughout the maritime indus- Commanding General for Civil and trial base. On June 15, 2026, the Ship- Emergency Operations, Major Gen- builders Council of America warned eral Jason Kelly acknowledged the that the waiver places more than $2.6 regulatory concerns and highlighted billion in active shipyard contracts and a need to expand dredging windows. planned expansion projects at risk. In- He assured attendees that the Trump dustry leaders argue that the longer the Administration is working on ways waiver remains in effect, the greater the to expand the number of days that uncertainty for investors, shipbuild- can be dredged each year in various ers, vessel operators, and mariners. Army Corps districts. In an attempt

As Clayton Heil, Vice President of to mitigate the environmental impact

Government Relations at Crowley of dredging projects, current seasonal

Maritime, testi? ed before the U.S. dredging windows operate under set,

Senate Commerce Committee during arbitrary calendars founded on out- the hearing The Blue Economy: Ad- dated and extremely minimal scien- 20 | MN July 2026