The Jones Act Waiver: What the Industry Data Shows and Why It Matters Now

What You Need to Know

• The Jones Act waiver has failed its stated purpose: oil prices have risen, foreign operators are benefiting at the expense of U.S. maritime industry investments and workers, all the while undermining U.S. National Security.
• On behalf of multiple maritime clients, the Adams & Reese team led a letter to Congress signed by over 120 executives and industry leaders nationwide, urging lawmakers to reject any extension and to let the waiver expire as scheduled.
• Research shows 634 businesses across 220 companies in 41 states face direct impacts from the waiver, with those numbers expected to grow if extended.
• U.S. Shipbuilders and maritime operators should review capital commitments, monitor congressional action, assess domestic supply chain disruptions, and evaluate resulting security and operational risks.

Overview

For more than a century, the Jones Act has required goods shipped between U.S. ports to travel on American-built, owned, and crewed vessels, sustaining a domestic maritime industrial base that has answered the nation's call in every major conflict since. On March 17, 2026, the Trump administration issued a 60-day waiver of that law to mitigate oil market disruptions caused by the closure of the Strait of Hormuz and the broader Middle East conflict. In late April, the administration announced a 90-day extension beyond the original May 17 expiration. 

On May 8, 2026, over 120 executives and industry leaders from the maritime industrial base and maritime organizations across the country signed a letter to Congress, urging lawmakers to reject any extension of the blanket Jones Act waiver and to allow it to expire as scheduled. The Adams & Reese team also published research visualizing the nationwide impact of the waiver, identifying 634 business locations across 220 companies in 41 states that stand to be directly harmed by the policy. The data makes one thing unmistakably clear: the Jones Act waiver carries national implications for American workers, shipyards, and supply chains from coast to coast.

Key Developments

The waiver has not lowered energy prices.

The central justification for the Jones Act waiver was to lower energy costs for American consumers. Unfortunately, its effect is, in fact, the opposite. Gasoline prices have risen across every U.S. market since the waiver was implemented, including in regions neither served by Jones Act vessels nor capable of benefiting from the waiver under any circumstance. As the waiver neared its 30-day mark, U.S. energy prices saw little to no relief, with shipping costs also increasing by more than 10 percent, according to industry reports. 

The primary driver of rising gas prices remains the cost and supply of crude oil and other energy commodities on global markets, not domestic shipping logistics.  Data compiled by the U.S. Maritime Administration indicates that foreign companies are engaging in disaster arbitrage, exporting American energy products to international markets where they command higher prices rather than providing relief to domestic consumers.

Foreign operators are the primary beneficiaries.

Roughly 95 percent of completed waiver voyages primarily benefit foreign maritime operators that do not pay U.S. taxes or comply with U.S. immigration laws and Coast Guard safety regulations. About 29 percent of voyages are connected to the People's Republic of China through ownership, joint ventures, or Chinese-built vessels. This directly conflicts with the administration's stated goals of reasserting U.S. maritime dominance.

Domestic shipbuilding investment is stalling.

Since January 2024, U.S. shipyards have secured more than $2.8 billion in disclosed commercial vessel contracts, reflecting renewed confidence in domestic shipbuilding. The waiver has disrupted that momentum. A major U.S. maritime investment platform has already halted a planned $1 billion investment. Discussions about rebuilding the domestic tanker fleet have stalled. Shipbuilding demands extended planning and massive capital, and private investors will not commit billions of dollars for a market that the government may arbitrarily open to foreign competition at any moment.

What This Means for Clients

The Jones Act sustains nearly 650,000 American jobs, generates approximately $154 billion in annual economic output, and provides roughly $41 billion in labor compensation. Every shipyard job supports four additional jobs throughout the broader economy. Clients with interests in domestic shipbuilding, vessel operations, marine equipment manufacturing, energy transportation, or maritime supply chains face real uncertainty about capital planning and competitive positioning.

For companies that have made or are considering long-term investments in Jones Act-eligible vessels or shipyard capacity, the waiver's extension signals regulatory instability. That instability increases the cost of capital and creates an uneven playing field with foreign operators who bear none of the regulatory, tax, or labor compliance obligations that U.S. companies carry. 

Clients should consider the following practical implications: 

• Review capital commitments. Evaluate whether current or planned investments in Jones Act-eligible vessels or shipyard infrastructure require contractual protections tied to regulatory continuity.

• Monitor congressional action. The waiver's future depends on whether Congress acts to block further extensions. Track legislative updates and developments through industry groups and advocates like the Shipbuilders Council of America and Adams & Reese.

• Assess supply chain exposure. Companies relying on domestic maritime logistics should identify where foreign competition under the waiver could disrupt pricing, service availability, or long-term contracts.

• Evaluate security and compliance implications. Foreign-flagged vessels operating under the waiver are not subject to the same crew vetting, documentation, and labor standards required of U.S.-flag operators. Consider how this affects port security and operational risk.

The Evidence is Clear – The Jones Act is the Quintessential “Buy America, Hire America Law” and the Waiver Undermines the Administration’s Efforts to Restore American Maritime Dominance  

The evidence assembled by Adams & Reese’s research, along with the more than 120 signatories from across 41 states, makes the case plainly. The waiver has not achieved its stated purpose. It has benefited foreign operators at the expense of American workers, stalled billions in private investment, and introduced security vulnerabilities into U.S. coastal infrastructure. Congress now faces a straightforward choice: enhance the foundation of America's domestic maritime industry or allow continued erosion through executive action. We will continue to monitor developments and provide guidance as the situation evolves.

The research conducted by Adams & Reese can be viewed here: Jones Acts Waiver Impact to Industry.