Carbajal Demands Jones Act Waiver Answers
U.S. Rep. Salud Carbajal (D-Calif.) sent a letter to Secretary of Homeland Security Markwayne Mullin October 16 demanding a detailed accounting of whether the legal conditions and reporting requirements of President Donald Trump’s waivers of the Jones Act have been met.
Carbajal, who represents the Santa Barbara area, is a strong maritime supporter who chairs the House’s Coast Guard and Maritime Transportation subcommittee of the House Committee on Transportation and Infrastructure; he also serves on the House Committee on Armed Services and other important committees. Since FY22, Carbajal has led the bipartisan appropriations letter requesting robust funding for the Small Shipyard Grant Program.
He has also been a consistent waiver opponent, having begun on June 5 sending letters to vessel owners and operators requesting information on whether they are complying with the qualifying conditions for the waivers.
Trump issued the first waivers on March 17, to allow foreign-flagged ships to transport oil, natural gas, fertilizer and coal between U.S. ports as global fuel prices surged. He extended them on April 24 by 90 days to continue offsetting energy market disruptions. On August 17, he extended them again for another 90 days, marking the longest continuous suspension of the law in its history. Following strong protests from the shipping and maritime community, the latest waiver extensions narrowed their scope, requiring the Department of Defense to consult with the U.S. Maritime Administration (MarAd) on a voyage-by-voyage basis rather than using a blanket exemption. It limited waivers strictly to energy products and agricultural commodities like fertilizers
Carbajal’s October 16 letter expressed “concern regarding the Department of Homeland Security’s (DHS) administration and oversight of Jones Act waivers, particularly in light of recent reporting that foreign-flagged vessels have transported more than $40 million in petroleum products between U.S. ports without required disclosures, among other potential violations. These reports raise significant questions about whether DHS and its component agencies are adequately enforcing federal law with respect to foreign vessels operating in U.S. domestic commerce.”
Carbajal requested documentary evidence that the shippers making use of the waiver are complying with U.S. tax, immigration and safety laws, as they are required to do. Income derived from trade between U.S. ports by exempted ships, for example, “is not eligible for the international shipping exclusion under Section 883 of the Internal Revenue Code or related treaty benefits. This raises additional questions about DHS’s role in facilitating and enforcing compliance with federal tax requirements.”
Carbajal asked, “Has DHS/CBP identified instances in which a (foreign) crewmember’s immigration status was inconsistent with domestic service, or in which a crewmember absconded?” The letter also asked for “a description of all coordination between DHS and the Departments of Defense, Transportation and Treasury; the IRS; U.S. Coast Guard; and other relevant agencies concerning operations under the waiver, including coordination regarding compliance with federal law and whether the statutory requirements for continued waiver authority remain satisfied.”
He asked for the information by October 31.
