Why it Matters
The House Subcommittee on Coast Guard and Maritime Transportation convened Wednesday, June 3 to review the fiscal year 2027 budget requests for the Maritime Administration (MARAD) and the Federal Maritime Commission. During the hearing, MARAD Administrator Stephen Carmel called the administration's own Jones Act waiver "a horrible policy" that failed to lower gas prices. The Trump administration supports a Maritime Action Plan to rebuild U.S. shipping dominance, yet Democrats and even some Republicans argued the 150-day Jones Act waiver directly undercuts that goal.
The Big Picture
The hearing fits into a broader push to reverse decades of U.S. maritime decline, accelerated by the administration's February 2026 Maritime Action Plan and the bipartisan Ships for America Act. The ongoing crisis in the Strait of Hormuz, where U.S. tankers have been actively fueling Navy carriers at sea, gave the hearing an urgent real-world backdrop. Congress passed the Ocean Shipping Reform Act of 2022, which expanded the FMC's enforcement authorities, and members used this hearing to press both agencies on whether they have the resources to execute those mandates.
What They're Saying
- Stephen Carmel, Administrator, Maritime Administration: "It's a horrible policy. It was done to cut gas prices, and gas prices have gone up since the waiver."
- Rep. Rick Larsen (D-WA-2): "An unending and frankly useless Jones Act waiver is kicking out one of the legs from under the table."
- Laura DiBella, Chairman, Federal Maritime Commission: "President Trump has centered the conversation of America's maritime dominance where it has the most significance."
Carmel confirmed that MARAD was not consulted before the waiver was issued and only learns of individual voyages ten days after they end. Rep. John Garamendi (D-CA-8) pressed further, noting that some waiver voyages list "non-applicable" as the national defense justification, the statutory basis for the waiver's issuance. Carmel acknowledged the point but said the waiver authority belongs entirely to the Departments of Defense and Homeland Security. Garamendi closed by warning the Pentagon directly: "There's going to be a big to-do tomorrow about the waivers. Guaranteed, it's gonna happen."
Democrats also challenged the budget's structure. Rep. Salud O. Carbajal (D-CA-24), the subcommittee's ranking member, noted that the president "cannot create a trust fund out of thin air" and pressed Carmel on whether ports can remain competitive with only $50 million in the Port Infrastructure Development Program line item. Carmel confirmed the remaining $500 million is parked in the proposed Maritime Security Trust Fund, which Congress has not yet authorized. Rep. Hillary J. Scholten (D-MI-3) fired back on the broader contradiction: "There is a single administration making these decisions."
Political Stakes
For Carmel, confirmed only in December 2025, the hearing exposed a difficult position: publicly endorsing an administration policy he privately criticized. His candor may generate goodwill on Capitol Hill, but it puts him at odds with the Departments of Defense and Homeland Security. For the FMC, DiBella's flat $40 million budget request drew bipartisan skepticism. Democrats argued that shortchanging the agency after Congress expanded its mandate under the Ocean Shipping Reform Act of 2022 undermines consumer protection. DiBella defended the request by pointing to technology investments and borrowed judges from the Department of Health and Human Services to handle caseload.
Yes, but:
Rep. Jefferson Van Drew (R-NJ-2), a Jones Act supporter, offered Carmel some cover, calling the waiver "a temporary issue, to the best of our knowledge" and framing the broader maritime agenda as a bipartisan effort to reverse decades of neglect under both parties. Rep. Jimmy Patronis (R-FL-1) thanked President Trump for his leadership on maritime issues and praised DiBella's enforcement record. Carmel himself noted that small modular reactors could reshape global trade as significantly as containerization did, and that the U.S. has a narrow window to architect that system on its own terms.
What's Next
Garamendi signaled a Jones Act amendment would be offered the following day during House consideration of the National Defense Authorization Act. The Coast Guard reauthorization bill, currently pending in the Senate, is also being eyed as a potential vehicle for the Ships for America Act. The Maritime Security Trust Fund will require separate authorizing legislation before MARAD can access the $1.4 billion it is counting on in the fiscal year 2027 request.
The Bottom Line
A Trump-appointed maritime administrator publicly broke with his own administration's signature Jones Act waiver, handing Democrats a ready-made talking point and signaling that the internal contradictions of the administration's maritime agenda will not stay quiet.
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